Two Indian Token Marketplaces Suspend Trading Due to Regulatory Pressure
Two Indian crypto token marketplaces have announced that they will halt trading from March 5. The platforms state that this is due to regulatory pressure which put their businesses “under a lot of stress.”
Also read: Indians Look to Buy Bitcoin Overseas as Regulations Tighten
Two Token Marketplaces Halt Trading
Two Indian crypto token marketplaces, Btcxindia and Ethexindia, have announced that they will “halt cryptocurrency trading from March 5,” the Economic Times reported.
Over 35,000 members have used the two platforms, the news outlet added. Btcxindia, which began as one of India’s oldest bitcoin exchanges, has been operating for four years. However, last year the platform dropped bitcoin trading to offer real-time ripple (XRP) trading for Indian rupees (INR). Btcxindia recently posted a notice on its website, stating:
Customers are advised to withdraw their funds (BTC, XRP and INR) on or before 04 March 2018, if not [their accounts] will attract annual wallet maintenance fees…XRP/INR trading will be halted effective from 05 March 2018.
Ethexindia is “India’s first ether exchange,” according to its website. The platform, which has been offering ether (ETH) trading for rupees for two years, has also halted both INR and ETH deposits. “Deposits received, if any, will be automatically reverted to the respective bank accounts,” the company emphasized, adding that, “ETH/INR trading has been halted from 01 March 2018. Customers are kindly advised to withdraw their INR and ETH.”
Both marketplaces are managed by S Capital Solutions Pvt Ltd. Other than these two platforms, S Capital also has a 12% equity stake in Crypt E Tech Solution, the company behind bitcoin payment service provider Blockonomics, according to its website.
Regulatory Pressure Mounting
The Indian government has been discussing the regulatory framework for cryptocurrencies and digital tokens. The roles of the regulators for cryptocurrencies have reportedly been decided and the law governing bitcoin is expected soon. Btcxindia recently informed its members:
As we heard in the budget speech, the Indian government is discouraging cryptocurrency trading. This has been clear also by government actions in the last year, and has put our business under a lot of stress and put us in a position where we don’t feel that we can continue our business in a professional manner any longer.
The company emphasized that “Until new rules are in place for tokens on public blockchains, we are halting our trading platform,” adding that the company will now focus solely on its blockchain consultancy work.
What do you think of these two platforms suspending trading because of regulatory pressure? Let us know in the comments section below.
Images courtesy of Shutterstock.
Need to calculate your bitcoin holdings? Check our tools section.