India is the world’s second most populous country and with this population, the country has the power to change the face of any industry. But it has chosen to stay away from cryptocurrency and has ignored the latest innovation. This has led to a collapse of a few crypto businesses and the latest addition to this list is that of Coindelta.
End of Coindelta- Delay in policy claims one more calamity
Coindelta is an Indian company which operates cryptocurrency wallets and exchange platform which allows people to buy and sell cryptocurrencies. Its been 16 months since the exchange was in operation but with the RBI-ban on providing the rupee support to crypto businesses and the long-lasting court battle which is still to come to a result, the exchange is now forced to cease operations.
In the recent medium announcement Coindelta’s founder, Shubam Yadav, announced that the exchange will no longer be able to provide exchange services for cryptocurrencies. According to the post “All the markets will be suspended at 2:00 PM on March 30, 2019, and the exchange will cancel all open orders at 2:00 PM and funds will be returned to the users’ wallets. Although the wallet services will continue until April 29, 2019, with a 30-day period for users to withdraw funds. To quote him from the post
“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 exchange for the last 6 months. The curb on the bank accounts by RBI has made us handicapped in order to provide seamless deposit 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”
Bitbns & WazirX jumps for the rescue!
Within hours of the Coindelta announcement, Bitbns, another popular exchange has come to rescue Coindelta users. In a medium post on the bitbns channel, the exchange announced that it is here to rescue Coindelta users migrate their funds to Bitbns. The exchange also announced that it will be waiving off/refunding any fee incurred while depositing funds to Bitbns from any other cryptocurrency exchange across the world. This meant any user can transfer funds from any crypto exchange to Bitbns without bearing any transfer charges.
The other rule for the offer is that the fees will be refunded only for 1st deposit transaction for each token during the offer period. According to the offer, the exchange will also refund user who deposits cryptocurrency of worth 25K.
WazirX Another Cryptocurrency Exchange in India Also announced a 100% withdrawal fee refund for Coindelta users.
Growing rage in Indian crypto community
The growth of Indian crypto industry has been crippled since The Reserve Bank of India (RBI) ordered financial institutions to stop dealing with cryptocurrency businesses last year, with a ban coming into effect on July 5. The government and India’s Supreme Court have since wrestled with whether that ban is proper, holding hearings and postponing crucial decisions as the debate ensued. March 29th was supposed to be the date of final hearing on this matter but now even that has move to early July which presumably is because of the upcoming general elections in the country.
This continuous delay and calamities of exchange like Zebpay and now Coindelta has raged the Indian crypto community. Tweets have emerged from various supporters calling the government’s move as shameful also calling for “no vote” movement.
Well the industry is facing the music in India and if the government doesn’t support, the industry will be languishing and we may seem more businesses going off.
Will the government support the industry or will it keep avoiding it bringing innovation to an abrupt end? Do let us know your view.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.