The cryptocurrency exchange platform Koinex has revealed that it will certainly not be accepting any more money down payments in its digital pocketbook after July 6. Also, they informed that they will certainly not assist in cash-out center for cryptocurrency holdings after 2pm on Monday.
Reserve Bank of India’s (RBI’s) law introduced in April led to chaos in the crypto world. After the ban, traders in India discovered a lucrative arbitrage opportunity to mint loan.
Clients of Koinex sold their holdings in massive amounts on Koinex as the target date approached. This inevitably resulted in a significant drop in costs for bitcoins, Ethereum, and surge, to name a few digital currencies. Major cryptocurrencies rate were trading at a reduced price when as compared to other exchanges. Bitcoin was trading at Rs 236,000, while Ethereum expense Rs 15,500 each on Sunday yet anywhere else bitcoins were traded for Rs 440,000 while Ethereum units were retailing for more than Rs 31,300
RBI ban came in to practice on July Sixth however Koinex offered time till Monday for people to withdraw their holdings. According to reports, some banks provided some even more days to most bitcoin exchanges to offer time for capitalists to withdraw their assets. The arbitrage opportunity spread via social media teams such as WhatsApp as well as Telegram teams comprising virtual currency investors and enthusiasts. Individuals of Koinex utilized this chance.
Some individuals bought coins from Koinex and encashed their holdings by moving to other exchanges such as Coindelta and PocketBit.
A person who used the opportunity stated to sources,
“The chance was as well excellent to be true.
I consumed all my down payments in the account to acquire a few money and obtained good prices on other systems which are still enabling trading but one does not know for how long,” said a 28-year-old engineer from Delhi, who claimed to have used the arbitrage.
RBI provided banks 3 months to stop all company relationships with any kind of companies trading or dealing with cryptocurrencies. Even after the crypto sector requested stay from the high court, the court declined the stay order recently.
Some cryptocurrency exchanges are still working by adopting peer to peer design that doesn’t include banks. cryptocurrencies can either traded for various other currencies or can be encashed by international exchanges.
A mechanical engineer turned journalist, Shekar takes a keen interest in the study and analysis of cryptocurrencies and blockchain strategy. With the cryptocurrency world blooming in the recent days, he finds great interest in monitoring their growth and gathering every possible piece of information about them. He works as a crypto-journalist for the website Beyond Bitcoinx.