The two stopped accepting deposits as early as January 1 and asked clients to withdraw funds by March. BTCXIndia will now focus on blockchain consultancy services hoping the government will learn the benefits of blockchain and adopt viable regulations
BTCXIndia and ETHEXIndia cryptocurrency exchanges have both suspended cryptocurrency trading on their platforms starting this Monday due to Indian government restrictions according to their announcement.
The two stopped accepting deposits as early as January 1.
BTCXIndia said the announcement by the government in its budget speech to discourage cryptocurrency and its actions last year against cryptocurrencies, put the business on the pressure to continue professionally. The company said it would stop the XRP/INR pair trading platform on March 5 until new rules are in place for tokens on public blockchains.
However, the company will still retain consultancy working with permission blockchains. BTCXIndia will also launch full-fledged blockchain labs http://schainlabs.com/ on March 09, 2018 to focus on blockchain based application. They said they hope the initiative will help the government lean the benefits that India can derive from blockchain tech. This would help promote regulation relating to the technology.
It stopped accepting deposits at the start of January and wrote to customers to withdraw their funds by March 4.
ETHEXIndia, which allows users to trade in Ethereum, also said deposits received from January 1 would be reversed to the respective bank accounts. It required customers to withdraw funds on or before 28 February 2018 before halting ETH trading from 01 March 2018.
The development comes after a series of warning and threats from the Indian government to citizens to not engage in cryptocurrency deals. India has no restrictions on digital currencies, but there are a consistent announcement and warnings from the ministries about cryptocurrencies. Finance Minister Arun Jaitley said last month that the government would eliminate the use of cryptocurrencies. However, both financing illicit activities and as part of the payment system.
The ministry related cryptocurrency to “Ponzi schemes” in late December. India’s central bank also warned that cryptocurrency investors are doing so at their risks.