Citing regulatory instability in the business, Unocoin stated it had decided before a Supreme Court hearing cryptocurrency's lawful status in India, set for July.
Since Cointelegraph reported, exchanges in the nation have confronted a moratorium on banking solutions because the central bank, the Reserve Bank of India (RBI), implemented ban dealing with crypto companies this past year.
The business is currently in the process of combating RBI's conclusion, that has taken the kind of a lengthySupreme Court procedure.
Since its summit, Unocoin has fired over 80 percent of its staff and is presently running off capital reservations as executives anticipate information about the near future.
“We did ask people to leave last week, but our operations will continue for the foreseeable future,” CEO Sathvik Vishwanath told The Economic Times. He continued:
“We have some amount of reserves to push through for the next couple of months and will wait for the Supreme Court’s verdict.”
At the beginning of April, fellow Indian trade Coindelta declared it was ceasing operations once and for all, similarly mentioning the exceptionally taxing regulatory landscape programs now face in the nation.
Unocoin, that has increased $1.5 million from shareholders such as Blume Ventures and Bitcoin Capital, made news last October when creators Harish BV and Vishwanath were detained by local authorities for failing to secure permission to put in a bitcoin ATM in a mall at Bengaluru.
Unocoin intended to utilize the ATM-like system to take money in exchange for bitcoins, following the RBI banned controlled entities from managing cryptocurrency exchanges. Bitcoin ATMs are very popular across the world.
Investments through venture funds or ICOs in India's blockchain startups are extremely low as a result of an absence of regulatory clarity, according to a Nasscom report.
Approximately $8.5 million was infused to the ecosystem up to now, with investments from the Indian blockchain ecosystem at less than 0.2percent of the worldwide total.