Indian exchanges undergo deposit and withdrawal issues

The financial institutions of India are moving away from cryptocurrency which leads to deposits and withdrawals delayed for weeks on exchanges like Koinex and Coindelta
09 January 2018   336

The current problems with Indian cryptocurrency exchanges might be the aftermath of the Reserve Bank of India which issued a statement in September 2017, comparing cryptocurrencies to ponzi scheme, warning people to stay away from virtual currencies such as Bitcoin. RBI claimed that cryptocurrencies are not backed by regulations hence there is a real and heightened risk of investment.

For instance, recently, many users have faced difficulties with INR withdrawals on Koinex, because a conflict between the payment service partner and their bank has caused an indefinite delay in the settlement of a large part of deposits to Koinex in the past 2 weeks.

Regulators world-over, have struggled to understand the underlying blockchain technology and develop an appropriate response to it; and India is no exception. These misgivings have resultantly affected the financial services community, who find it difficult to make up their mind about supporting cryptocurrencies, eventually causing organisations like Koinex and its users to bear the brunt.

Koinex blog post statement

Moreover, Indian crypto exchange Coindelta, also had deposit and withdrawals problems lately due to similar reasons, as reported by Quartz, and the management of three other exchanges confirmed they experienced the same issues.

As soon as RBI clarified that it has not given any licence to any company to deal with Bitcoin or any cryptocurrency, it seems to be the reason why banks and financial institutions are trying to stay away from making any operations with the virtual exchanges.

Wyoming Passed Bill Exempting Utility Tokens from Securities Laws

The Wyoming House of Representatives has unanimously approved a bill exempting utility tokens from securities laws  
20 February 2018   82

On Monday, House Bill (HB) 70 passed the House 60 to 0 and will now head to the Senate. The bill exempts utility tokens from securities laws. This will attracts ICO’s launches to the state and will make the state a favorable environment for blockchain startups.

According to the bill, the utility token must meet three conditions:

  1. The token’s issuer must not market it as an investment;

  2. The token must be exchangeable for goods and services, for example, startups must have a working product or service at the time the tokens are issued;

  3. The token’s issuer must not actively make efforts to create a secondary market for the token by entering into a repurchase agreement or agreeing to locate buyers for the token.

It is important to note that there are four more cryptocurrency and blockchain-related bills currently moving through the Wyoming legislature.

HB 19 passed the House of Representatives on Monday and is now awaiting introduction in the Senate. The bill exempts cryptocurrency from the state’s money transmitter act.

HB 101 has passed its second reading in the House and, if it passes its final hearing, will then go to the Senate. This bill will allow companies to create and use blockchains for the purpose of storing records and conducting inter-office communication.

HB 126 has just passed its second reading in the House. It will allow the creation of series LLCs.

Senate File (SF) 111 passed a vote to introduce on Friday and is now headed to a committee hearing. This bill will exempt cryptocurrency assets from state property taxes.