As India continues to crack down on cryptocurrencies and related businesses, trading platform Coinome has announced it’s shutting down. The company made the decision after the Indian Supreme Court postponed the “Crypto vs. RBI Case” to July 2019.
Billed as “India’s Safest Digital & Crypto Assets Exchange”, Coinome is backed by billion-dollar, Mumbai-based payment gateway BillDesk. All crypto markets on the exchange will be suspended and any pending or open orders will be canceled, effective May 15, 2019. Coinome asked customers to withdraw all of their cryptocurrencies from the platform as soon as possible.
In an email to customers, Coinome says,
“India is currently going through uncertainty on crypto guidelines and regulations. The government of India has not yet taken a decision on the regulatory framework for crypto exchanges or wallets. Further, the supreme court is yet to act upon the public interest litigation (PIL) on (the) regulation of cryptoassets.”
The “Crypto Vs. RBI Case” sees several cryptocurrency exchanges challenge the Reserve Bank of India (RBI) on its order prohibiting banks from servicing cryptocurrency exchanges.
The Reserve Bank of India has taken a strong stance against the use of cryptocurrencies. Last September, Zebpay, the largest crypto exchange in India, ceased operations in India and relocated to Malta.
In January, Indian police in Jammu and Kashmir issued a public service announcement against cryptocurrencies.
“The general public is informed not to make any type of investment in cryptocurrencies, virtual currencies (vcs) such as Bitcoin because there is a real and heightened risk associated with them. This can result in a sudden and prolonged crash, exposing investors; especially retail consumers who stand to lose their hard-earned money.”
Earlier in April, India’s government circulated a proposal to eliminate cryptocurrencies from all areas of business and daily activities. The “Banning of Cryptocurrencies and Regulation of Official Digital Currencies Bill 2019″ brings the country steps closer to outlawing the sale and issuance of digital assets such as Bitcoin.