CryptoKart closes down one month after Koinex. CryptoKart, an indian crypto currency exchange, recently announced that they are closing down due to recent policies against cryptocurrencies in the country.
Writing in a LinkedIn post, the Founder of CryptoKart Gaurang Poddar, said that closing was a difficult but necessary decision. The website is not opening as well.
We’ve decided to shutdown Cryptokart. While its difficult, given the hard work we’ve put in, it’s been a great experience and I’m glad to have gotten to work with such a talented and passionate team, and proud of the platform we’ve built.Gaurang Poddar
This news comes on the heels of Koinex closing recently. Koinex was the largest crypto currency exchange in the country but could not sustain the losses due to the RBI policy.
The Reserve Bank of India, its central banking authority, released a circular in the latter part of 2018 that banned any banking institution from dealing in any crypto currency whatsoever. The fallout of that circular led to many investors backing out of the crypto market. The issue was made worse when a leaked policy draft by a government committee recommended a 10 year jail sentence for crypto currency users.
More indian companies may close down before the issue is resolved. At the moment, the matter has been brought to the apex court, The Supreme Court of India. The next trial date is on the 23th of July 2019. While some are hopeful that the government may take a different decision that the committee recommendations, the outlook is not looking good. A proposed KYC for crypto currency users has led to speculation that India may be inching closer to a crypto friendly approach.
Although, the policy statement has effectively put a ban on making new investments in cryptocurrencies with immediate effect, existing investors have been given a window: “We have decided to ring-fence the RBI regulated entities from the risk of dealing with entities associated with virtual currencies. They are required to stop having a business relationship with the entities dealing with virtual currencies forthwith and unwind the existing relationship within a period of three months,” BP Kanungo, Deputy Governor, RBI said.
According to Bitcoin.com –
India’s cryptocurrency regulation is being drafted by an interministerial committee headed by Subhash Chandra Garg, Secretary of the Department of Economic Affairs, Ministry of Finance. During the last hearing, the government told the court that this committee was in its final stages of deliberations. The exact date of the next hearing will be in the court order which has yet to be released.
The “Ex-founder” Poddar made a request for another notification of any position as a product manager. He also asked if anyone else was interested in setting up their own cryptocurrency exchange.
CryptoKart closes down and this may be just the start of the domino effect. Before the ban India had an estimated $2 Billion investment in Bitcoin alone. The current users are unsure whether to wait out the storm or cash and run. Either way, CryptoKart has made a decision.