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   640

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.

Bakkt to be Launched in December

It is also reported that Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure
19 October 2018   39

The expected launch of the Bakkt will take place on December 12 of this year. It is reported by The Block, citing informed sources.

Also, the material states that the investment bank Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure. At the same time, the bank is considering the possibility of trading futures on a new platform.

In a recent Fortune interview with Bakkt, Kelly Lofler said that the cryptocurrency market is on the verge of a revolution comparable in size to the one that occurred on the energy market in the early 2000s.

Greater institutional participation in the digital asset markets requires secure and regulated custody solutions. We are impressed by BitGo’s product, unique services, and the management team. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.

Rana Yared

Managing director, Goldman Sachs’ Principal Strategic Investments group

Bakkt is a cryptocurrency unit of the Intercontinental Exchange (ICE), which is the operator of the New York Stock Exchange. Giants such as Microsoft and Starbucks are taking part in creating of the new project, which is positioned as an “ecosystem for digital assets”.

The new platform will offer deliverable bitcoin futures to the market (unlike the settlement contracts for CBOE and CME, these are based on the underlying asset). The platform will support multiple fiat currencies.