Nikolas Sargeant
OKX Ceases Services in India
In correspondence sent on Thursday, March 21, OKX prompted Indian users to close accounts and withdraw funds before April 30. Citing regulatory obstacles as the primary cause, OKX expressed regret in ceasing services in India, advising users to liquidate all positions and redeem funds from various products before the deadline. The exchange assured the safety of users' funds until withdrawal, despite efforts to comply with stringent Know Your Customer checks following previous blocks in January.
The decision arose after the Financial Intelligence Unit (FIU) requested the Ministry of Electronics and Information Technology to block notified exchanges' websites within two weeks. Despite OKX's attempt to navigate regulatory requirements, including applying for a new registration process, the exchange couldn't fulfill the criteria, leading to its cessation of services.
Regulatory Ambiguity Plagues Cryptocurrency Exchanges in India
On December 28, 2023, the FIU issued noncompliance notices to several exchanges, including Binance, Kraken, Huobi, and Gate.io, under the Prevention of Money Laundering Act. While some local exchanges complied, international exchanges like OKX faced hurdles. Consequently, Apple's App Store and Google Play Store blocked apps from several exchanges.
Navigating India's cryptocurrency landscape remains challenging due to unclear regulatory guidelines and stringent government actions. Despite ongoing discussions, the absence of a formal regulatory framework leaves industry players uncertain about their legal standing and obligations. Additionally, the tax regime imposes significant taxes on crypto income, prompting some players to relocate operations.
