With the growing trend in regulations and in some jurisdictions, a fully-fledged clampdown, only those cryptocurrency operations that have a strong backbone could stand tall, and the ones which do not, unfortunately crumble down.
That is what seemed to have happened with two cryptocurrency exchanges in India.
According to local news sources, BTCXIndia and ETHEXIndia have gave in to regulatory pressure from the Indian authorities and have decided not to continue with cryptocurrency trading. Both exchanges operated under the same team, with BTCXIndia, before its closure, dealing in the trading pair of Ripple (XRP) and Indian Rupee (INR), with ETHEXIndia dealing in the trading pair of Ether (ETH) and INR.
The exchanges sent an email to their customers stating that they will be halting their trading operations effective March 5, 2018, and will instead focus on their consultation services that they will continue with “permissioned” blockchain networks.
The email sent from BTCxIndia was shared by news outlets as well, an excerpt of which has been outlined below:
“… 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.
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 permissioned blockchains. All trading activity will be halted as of March 5th 2018. [sic]”
The exchanges also asked their customers to withdraw their funds before the deadline.