Solution to Regulatory Uncertainty in Koinex’s Shutdown

Koinex, a Beenext and Pantera Capital backed crypto exchange, shut down its exchange services on Thursday, June 27, 2019. Rahul Raj, the founder of Koinex posted on social media reasoning the shutdown, “We have consistently been facing denials in payment services from payment gateways, bank account closures and blocking of digital transactions for the trading of digital assets. Even for non-crypto transactions like payment of salary, rent, and purchase of equipment.”

Koinex founded by Rahul Raj, Rakesh Yadav, and Aditya Naik, was launched in August 2017 and quickly rose to the position of a trusted exchange in India. The company reached its high peak with $265 million in trading volume and more than 40,000 new users in 24 hours, in December 2017, when Bitcoin soared upto $20,000.

Raj further wrote, “The last 14 months have been tough to operate a digital assets trading business in India, on account of the closure of bank accounts holding user deposits. We took on immense financial burden to continue trading of digital assets and allow law-abiding Indians to participate in the decentralized revolution that has swept across the globe,”

The company further enunciated that it is the fear and uncertainty in the Indian crypto trading community that has led to the sharp decline in their trading volumes. After the recent media reports surrounding the proposed jail term for those who mine, hold or sell cryptocurrencies that were circulated nationally as well as internationally, it is infeasible to continue their services. However, the reports lacked sufficient evidence and could not answer certain questions pertaining to the reports. Click here to know what actually happened.

Koinex, a Mumbai based crypto exchange has disabled all its digital asset trading services at 2 p.m. on June 27, 2019. All open orders after this deadline will be automatically canceled and the funds will be returned to the corresponding wallet of their clients.

The company plans to release all the deposits of its users to their respective bank accounts after levying convenience charges between Rs 10–200, in the course of the next 5 weeks.

With the shutdown of a leading Indian exchange, its users feel chaotic and confused about what to do with their digital assets next and how to handle them. A wise solution to this problem would be to withdraw and transfer all their digital assets to another exchange platform.

The things that a user should consider while switching from one exchange to another and the must-haves of an exchange are:

• Global presence across the world
• Well established infrastructure
• Strong security
• Provision of crypto-to-crypto and crypto-to-fiat trading
• Simple Cross Border Payments

One of the exchanges that provide all the above features and has carved a niche for itself globally is PCEX.

Why choose PCEX?

PCEX has a huge infrastructure, global presence spread across 7+ countries, high-end security provided by 5-layer security model, a low transaction fee of 0.05% and provision of crypto-to-crypto and crypto-to-fiat trading.

PCEX offers multiple facilities for its users like — No maker, No taker fees to ease their trading process.

Zero Migration Fee On Exchange Change

PCEX will charge zero maker or taker fee while changing your trading exchange platform from Koinex to PCEX.

No Regulatory Uncertainty

Additionally, PCEX is regulated from Estonia, Europe and thus, remains unaffected by regulatory uncertainty which seems common among other Indian exchanges, making it a completely reliable platform for its users.

Considering the above factors and the benefits provided by PCEX one can make a rational switch from other exchanges to PCEX within no time.