What are the reasons behind the shutdown of Indian crypto exchanges?

3 answers

• SonyaApr 10, 2023 · 2 years ago
  The shutdown of Indian crypto exchanges can be attributed to several reasons. Firstly, the Reserve Bank of India (RBI) issued a circular in 2018 prohibiting banks from dealing with cryptocurrency-related businesses. This made it difficult for exchanges to operate as they were unable to access banking services. Secondly, the lack of clear regulations and uncertainty surrounding the legal status of cryptocurrencies in India created a hostile environment for exchanges. Additionally, concerns over money laundering and tax evasion led to increased scrutiny from regulatory authorities. These factors combined made it challenging for Indian crypto exchanges to continue their operations.
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• clues tomMay 03, 2022 · 3 years ago
  The shutdown of Indian crypto exchanges was primarily caused by regulatory restrictions imposed by the Reserve Bank of India. The RBI's circular in 2018 effectively cut off the banking support for cryptocurrency exchanges, making it nearly impossible for them to function. This move was driven by concerns over the potential risks associated with cryptocurrencies, such as money laundering and illicit activities. The lack of clear regulations and the absence of a comprehensive framework for cryptocurrencies in India further exacerbated the situation. As a result, many exchanges were forced to shut down or relocate their operations to more crypto-friendly jurisdictions.
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• Noman ChughtaiSep 09, 2023 · 2 years ago
  As an expert in the field, I can tell you that the shutdown of Indian crypto exchanges was a result of multiple factors. The regulatory landscape in India has been uncertain, with conflicting statements from government officials and regulatory bodies. The Reserve Bank of India's circular in 2018, which prohibited banks from dealing with cryptocurrency-related businesses, was a major blow to the industry. This created a situation where exchanges were unable to access banking services, making it difficult to operate. Additionally, concerns over money laundering and tax evasion have been raised, leading to increased scrutiny from regulatory authorities. These factors, combined with the lack of clear regulations, made it challenging for Indian crypto exchanges to continue their operations.
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