Cryptokart, an India-based cryptocurrency exchange is now among several other bitcoin trading venues in the South Asian country that have closed their doors due to regulatory uncertainties and lack of interest on the part of consumers, reports New Indian Express on July 20, 2019.
Per the report, Cryptokart is now the third cryptocurrency exchange in India to have discontinued its services within the past year.
Reportedly, the digital currency exchange’s shutdown is due to consumers’ low interest in cryptocurrencies and unclear government policies regarding the nascent industry.
Gaurang Poddar, Cryptokart’s founder said on the platform’s official LinkedIn page that the closure of the firm was a difficult decision to make considering the hard work that was put into its operation.
“General interest in crypto in India has tanked. And the government isn’t going to introduce any regulation and leave it grey for a while. It has been a great experience working with talented and passionate individuals to run the digital currency exchange. “Unfavorable Conditions
Since the Reserve Bank of India (RBI) mandated all financial institutions under its purview to desist from servicing bitcoin-linked businesses in April 2018, the Indian cryptospace has suffered a severe crisis. For the most part, it has become impossible for companies in the region to have access to financial services from payment gateways and banks.
It’s worth noting that Cryptokart is not the first cryptocurrency business in India to call it quits in the past year. Zebpay and Koinex, two of the largest exchanges in India also closed their doors late last year and this summer, respectively.
Sadly, the regulatory challenges have also impeded the growth of initial coin offerings (ICOs) and other crypto-based fundraisers in the country.
For instance, Nasscom, an IT industry body revealed in its report that the funds yielded from venture capital firms and initial coin offerings in blockchain and cryptocurrency sector has been considerably low as a result of harsh policies and lack of regulatory clarity.
As it stands, things may not get rosy again anytime soon for Indian crypto enthusiasts if recent comments from the nation’s government officials are anything to go by.
Anurag Thakur, India’s Minister of State for Corporate Affairs restated this month that crypto assets are not regarded as a legal tender and the government is still deciding if they should be allowed as a trading tool.
BTCManager on June 4, 2019, also informed that the Indian government is unlikely to change its stance on cryptocurrencies.
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