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Indian Cryptoexchange Shuts Down: Cryptocurrency Not Banned YET

Cryptokart, a cryptocurrency exchange based in India announced it plans to shut down last week, saying that the exchange was difficult, especially with how the Indian government handled cryptocurrencies, but he said the overall experience was positive and he was proud of the platform. He still appears to want to stay in the field, saying if anyone wants to launch their own exchange, he would be interested.

One of the largest cryptoexchanges in India also ceased operations in June, with another in May, stating that hostile regulatory environment as the cause of their shutdowns. A leaked legislation with no validity circulated social media saying that Indian might ban cryptocurrencies in the coming future, and people found to be holding cryptocurrency could face 10 years in prison.

The Minister of State for Finance Anurag Thakur has said there is no law in India currently expressly prohibiting the use of cryptocurrency. Cryptocurrency activities are reportedly only actionable offenses if they violate preexisting laws, which can be enforced by entities including the RBI, enforcement directorate, and income tax authorities. The Indian government still does not recognize cryptocurrency as legal tender.

The Reserve Bank of India, India’s central bank, issued a statement in April of 2018, preventing banks and other regulated entities from dealing with individuals or businesses associated with the cryptocurrency market. In response, some banks closed any customer accounts that showed traces of cryptocurrency-related activity. This was the primary reason for the shut down of crpyto exchanges such as Koinex.

An upcoming court hearing on July 23, tomorrow, will address petitions against these banking restrictions and should hopefully provide the community with more clarity, potentially leading to a legal statement such as one made by China’s Hangzhou court, where it recognized cryptocurrency legally. While this is unlikely it would still be nice to see.

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