India based crypto platform, Coindelta recently announced that it would be shutting down its domain as it had been struggling to keep operations running amidst the uncertainty surrounding the on-going regulatory ban imposed by the Reserve Bank of India. In a blog post for Medium, Coindelta founder Shubham Yadav wrote,
“Much to our regret we will no longer be able to provide exchange services for cryptocurrencies. It has been really difficult for us to operate Coindelta for the last 6 months. The curb on the bank accounts by RBI (Reserve Bank of India) has made us handicapped in order to provide seamless deposits and withdrawal services. There has not been any significant progress in the supreme court case which makes it difficult to predict when we will see the regulation.”
Though the platform officially ceased trading on March 30, the wallet service will be available for withdrawing digital assets till April 29 and customers can withdraw their funds through the Coindelta support page. However, due to the ‘unfavorable environment’ created by banking restrictions on the crypto industry, running the platform resulted in an increase in operating cost.
For reimbursement, the company has hiked the withdrawal fee for traders seeking to liquidate which highlights a similar withdrawal fee hike done previously by another Indian crypto exchange platform, Zebpay when it ceased operations. Nichal Shetty, CEO of WasirX has reached out to the Coindelta community and assured that traders could use its platform for withdrawing funds with ‘100% withdrawal fee refunded’.
Banking regulations crippling India’s crypto industry
On April 5, 2018 the RBI had issued a circular that raised concerns over the use of virtual currencies for transactions and trading, stating that “it (RBI) will not deal with or provide service to any individual or business entities dealing with or settling virtual currencies.” The delay in decision-making by the government over implementing crypto regulations as well as the stifling move taken by the RBI, has resulted in the closure of a number of crypto exchange platforms, and even the oldest Indian based Zebpay was forced to shift its base to Malta.