Though there have been several similar untimely demises of Bitcoin companies, looks like it is the first casualty in Bitcoin ecosystem in India as BTCXIndia has shut its operations. The company says that as it cannot find banking partner is has decided that it won’t be able to continue its services.
The India-based exchange that provided a live trading platform and wallet service says that it would close its doors on May 20, 2015 as without a bank account, it can no longer operate as a business. The company is giving advanced notice and says:
We regret to inform you that BTCXIndia is closing down its Bitcoin trading platform as of 20th of May 2015. We have today been informed by our bank that they will no longer serve Bitcoin businesses. We have investigated the possibility to operate through other banks, but it seems this is a general policy in India as of today.
The company was launched in May 2014; thus, it has not even been a year. Though the BTC exchange aimed to offer a regulatory compliant trading platform, it had always been looking for partnership with banks and authorities to ensure it is a legally compliant company. However, the latest decision to shut the shop shows it failed in its goal.
However, following the professional integrity the company says that business will conduct as normal until 20th of May. The company also urges customers to withdraw all funds before this date. Though BTCXIndia apologizes for the untimely closure of the operations, it makes clear that the decision is being made as it does not have any control over the circumstances.
What the Actual Reason is behind the shutting?
Nonetheless, the company is still hopeful when it says, “Once the regulatory situation has become clear in India, we hope to once again open for trading. Until then, we would like to thank you for your business and support.” However, this seems to have set panic within community at large as even some other Bitcoin companies may get affected.
Interestingly, though BTCXIndia also cites the regulation is an issue, it seems this is not the major factor as several other Bitcoin companies like Unocoin are operating successfully. Also, there is no blanket ban or directive from RBI i.e. Reserve Bank of India on Bitcoin companies in India. It only had warned the users to stay away from Bitcoin but did not ban outright.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org