OKX, a cryptocurrency exchange, has decided to cease its services in India following compliance notices from the Financial Intelligence Unit (FIU) of the Indian Ministry of Finance to nine foreign crypto exchanges. Users in India have been notified to close their accounts and withdraw funds by April 30, with regulatory challenges cited as the primary reason for this decision.
OKX notice to Indian users. Source: OKX
Despite implementing stricter Know Your Customer (KYC) procedures after authorities blocked its website and application in January, OKX’s recent notice indicates the cessation of operations in India. The country’s regulatory environment for crypto exchanges remains ambiguous, with stringent government actions complicating the landscape.
India, despite being a potentially lucrative market, lacks clear regulatory frameworks for cryptocurrencies. Discussions on regulation have persisted for years without concrete outcomes. The government’s stance, reflected in significant taxes on crypto income and transactions, has prompted established players to relocate.
FM Nirmala Sitharaman latest statement on Crypto regulation.$OpSec #zerodha #WazirX pic.twitter.com/sUaoSIIg4t
— Jackson Chakma (@jackck_8) March 15, 2024
In a recent interview, the Indian Finance Minister reiterated the government’s reluctance to treat cryptocurrencies like fiat currencies. However, market participants advocate for clearer regulations akin to those governing traditional financial markets rather than equal treatment to national fiat currencies.
