An increase in cryptocurrency trading in India has shown the importance of the digital currency in the country. That importance has had a deep impact on how cryptocurrencies perform worldwide, so the news that two exchanges in India were forced to shut down is a significant revelation. The move comes as India continues to exert more regulatory pressure on cryptocurrency operators in the country.
Btcxindia and Ethexindia suspended operations as of Tuesday without providing any details on how long the suspension may last. There’s no indication that the suspensions will be lifted anytime soon on the platforms, both of which have garnered a great deal of favor with traders in the country. Btcxindia is one of the oldest cryptocurrency exchanges in India.
There is concern that India might work to completely ban cryptocurrency trading, despite its continued acceptance and growth. This has yet to be confirmed, but the regulatory pressure the exchanges have met could serve to be a sign of things to come. It’s well-known that India is considering some type of control over the digital currency, though.
Users have been told that they should make withdrawals of their funds as soon as possible. Funds left in crypto wallets will incur annual maintenance fees. No new deposits were accepted on Monday, and withdrawals were only available until the end of the day. Trading activity has now been completely suspended, with no additional information from the exchanges.
The move gives the impression that India wants, at the least, to discourage trading of cryptocurrency. It recently publicly stated that it won’t consider cryptocurrency to be legal tender and could possible take steps to eliminate the use of the coins. It’s still too soon, however, to determine if government leaders will be successful in their attempts. However, the situation definitely paints a bleak picture for crypto’s future in the country.
Despite not wanting to allow cryptocurrency tokens in the country, there is a little bit of good news that comes out of India. It’s considering using blockchain technology in its transition to a digital economy. What this means for future long-term plans for cryptocurrencies remains a secret. India’s cryptocurrency community traded more than $3.5 billion in a 17-month period ending last month.