Indian cryptocurrency exchange Coindelta has shut down its operations after just 18 months since its launch because of adverse working regulations. In a closure notice, the crypto exchange indicated that they were terminating trading services as from 30th March.
Stringent central bank regulations on cryptocurrency
While speaking on the shutting of operations the founder of Coindelta Shubham Yadav indicated that the decision was reached because of stringent cryptocurrency regulations imposed by the central bank of India. He added that in the last six months the crypto has experienced difficulties because of the curb on accounts by the Reserve Bank of India.
The curb crippled the crypto as it became hard to provide seamless withdrawal and deposit service because of high operational costs which make the business economically unviable. Yadav also indicated that there is minimal progress on the Supreme Court case which increases uncertainty about the regulation. In April last year, the Reserve Bank of India gave a directive of barring banks from providing services to crypto business. According to reports even individual accounts have been affected as banks extend the ban to include single traders.
Rising operational costs pushed Coindelta to closure
Since its launch in 2017, Coindelta had attained a considerable number of followers because of low trading fees relative to those charged by competitors. Although the strategy led to the exchange attracting many followers it has been their undoing driving them out of business as they stated the crypto’s operational costs had become unsustainable. The founder indicated that the exchange had been operating at minimal trading fees and in the current unregulated setting they could not manage to continue offering services.
Trading services were terminated on 30 March with the exchange canceling ongoing orders and sending funds to respective wallets. The wallet services will, however, be available up to 29, April 2019 and users have been asked to withdraw their funds through the support page or email. The cryptocurrency is now charging considerably higher withdrawal fees contrary to what they have been offering.
WazirX is taking advantage and they are offering refunds for withdrawal fees to users who can move their funds from Coindelta to the exchange.