Set up in 2017, cryptocurrency exchange Koinex started its digital assets exchange services on August 25, 2017, according to Mr Raj's blog post.

He described Koinex as the first open order-book, fully KYC (know your customer/client) compliant, multi-asset exchange.

In his post, Mr Raj claimed that Koinex recorded $264 million worth of trading volume in the first four months of operations, making it the country's largest digital assets exchange.

In April 2018, the Reserve Bank of India issued a circular instructing all regulated financial services entities to exit relationships with companies and individuals dealing in virtual currencies. The central bank also instructed financial service providers to block all crypto-related transactions.

The last 14 months have been tough to operate a digital assets trading business in the country on account of the closure of bank accounts holding user deposits, Mr Raj wrote.

"We took on immense financial burden to continue trading of digital assets and allow law-abiding Indians to participate in the decentralized revolution that has swept across the globe."

"Multiple delays by the government agencies in clarifying the regulatory framework for cryptocurrencies despite our pending writ petition in the Supreme Court of India, coupled with regular disruption in our operations, the final decision has been taken after duly considering all the latest developments in the crypto and blockchain industry in India," he added.

Koinex said on Twitter that all open orders after the 2:00 pm deadline on Thursday will be automatically cancelled and funds will be returned to corresponding wallets. "Users are requested to plan their trading activity carefully and close their trade positions," it said.

"Since the bank accounts with user funds are still frozen and the capital is held up, we have made arrangements for funds from our own resources, so that we return as much as we possibly can, back to our users and alleviate their position in reference to the funds held up in these frozen accounts," Mr Raj wrote.