Couple of cryptocurrency exchanges in India halts trading, blame the government.
BTCXIndia, ETHEXIndia, has sent an email to all their customers stating that they will be suspending the trading facilities. They have clearly blamed the government for the stress on their businesses.
According to the website of both the exchanges, any deposits made to the exchange after January one, will be reverted to the bank account of the users.
BTCXIndia started in the year 2014. On the other hand, the 2nd cryptocurrency exchange started in the year 2016. BTCXIndia has clearly stated to the users that they need to withdraw their holdings by March 4. After that, there will be a wallet maintenance fee which will be applied. Also, they have further stated that updating rates in real time will be halted for ripple on March 5.
EthexIndia on the other hand has given the time to users till February 28 to withdraw the funds and holdings. According to the volumes, this rank of this exchange is 163.
The Finance Minister of India recently mentioned in the budget speech that the government will do each and everything to halt cryptocurrency trading. The government believes that cryptocurrency trading is only being used for illegal activities. This is the reason why the government is cracking down hard on most of the cryptocurrency exchanges.
Moreover, in December of last year, the Finance Minister clearly stated that he believes that Bitcoin is nothing more than a Ponzi scheme. Similarly, in January 2018, many of the banks actually took action against the cryptocurrency based accounts. Many such accounts were suspended as well.
There were also rumors that cryptocurrency trading will be banned in the country. However, the government has no such intentions as it was clarified by some of the sources. However, the recent clampdown on cryptocurrency trading will have a lot of users worried. Still, there are a few cryptocurrency exchanges which are operating in the country. However, they are headquartered in Singapore. This is the reason why they are able to easily operate in the country.
If the banking facilities are withdrawn from those exchanges as well, it will be very difficult for the cryptocurrency exchanges to provide local services. This is the reason why it is important to watch on the moves of the bank as well. With the banks not willing to provide banking facilities to the cryptocurrency exchanges, it will be very difficult for them to lead the users to deposit the money and withdraw the money whenever they are investing or liquidating from the cryptocurrencies.