Curtains for BTCXIndia and ETHEXIndia
After months of nervousness and various government actions towards curbing crypto trading in India, BTCIndia and ETHEXIndia exchanges have given up. They have officially announced closing their shops by March 5, 2018 and March 1, 2018 respectively, i.e., post these dates there won’t be any trading in these exchanges. Launched in 2013 in Hyderabad, BTCXIndia, presently deals in Ripple (XRP) and provides real time trading of crypto tokens and Indian rupee, while ETHEXIndia allows you to trade in Ethereum (ETH). As per media houses, the announcement was made via an email to its members. Email mentioned “stress to the business” because of continuous actions taken by government to curb crypto trading in India was the main reason of ceasing trading in the exchanges.
BTXIndia customers have advised their customers to withdraw their funds by March 4, 2018 in Bitcoin (BTC), Ripple (XRP) or the Rupee (INR) before an annual wallet maintenance fee is applied whereas ETHEXIndia customers were advised to withdraw the money by Feb 28, 2018 in Ethereum (ETH) or Rupees. BTCindia informed its customers that it would not accept deposits effective January 1, 2018 and any deposits received would be automatically returned to customers.
“It's been 4 years since we opened BTCXIndia, and 2 years since we opened ETHEXIndia. We have served 35000+ customers during the years and have witnessed the BTC price go up 50x and the ETH price go up 100x. We have kept your crypto safe, and allowed you to trade against others on equal terms, in a safe environment, while adhering to KYC & AML and other tax compliance requirements.
As we heard in the budget speech, the Indian government is discouraging crypto currency trading. This has been clear also by government actions in the last year, and has put our business under a lot of stress and putting us in a position where we don't feel that we can continue our business in a professional manner any longer trading. This has been clear also by government actions in the last year, and has put our business under a lot of stress and putting us in a position where we don't feel that we can continue our business in a professional manner any longer.
Until new rules are in place for tokens on public blockchains, we are halting our trading ( XRP/INR pair) platform and will focus 100% on our consultancy working with permission (sic) blockchains. All trading activity will be halted as of March 5th 2018. Please withdraw all assets from your account before then.
The consultancy business started in April 2017, and has so far developed client registry platforms, automated escrow management and payment solutions for a number of clients in the financial, health and agriculture sectors. We are launching full fledged blockchain labs http://schainlabs.com/ on March 09, 2018 for Blockchain based application development and consultancy. We hope that this work will help the government seeing the huge benefits that India can derive from blockchain technologies, and eventually promote progressive and clear regulation also for the public blockchain space”
There has been lot of commotion in India around crypto currency since 2nd half of previous year. Late in 2017, Indian banks froze the accounts of some of the country’s largest exchanges as most of the exchanges were running on borrowed money with small amounts of private funding to back them. Subsequently, the Indian Income Tax Department which went on to audit several of the larger exchanges including BTCXIndia as well as some private investors. At the time (December 2017) the tax department speculated that the cumulative revenue of the ten largest exchanges in India amounted to around $6 billion. In such a scenario, closing of exchanges is a big setback for all the crypto enthusiasts in India.