- OKX halts services in India amid regulatory challenges.
- Indian users instructed to close OKX accounts by April 30th.
- FIU pressures for blocking non-compliant crypto exchange websites.
Cryptocurrency trading platform OKX has announced the cessation of its services in India. This follows roughly three months since the Financial Intelligence Unit (FIU) under the Ministry of Finance of India dispatched letters demanding compliance from nine foreign exchanges.
OKX issued a directive to its Indian users on March 21st, instructing them to terminate their accounts and transfer their holdings out of the exchange by April 30th. The exchange cited the restrictive regulatory environment in India as the primary cause for its departure.
A fortnight subsequent to the initial advisory, the FIU urged the Ministry of Electronics and Information Technology to block access to the websites of the cryptocurrency exchanges that had received the earlier warnings. Although OKX had integrated additional Know Your Customer (KYC) procedures into its signup process in reaction to the January measures, the platform is nonetheless exiting the Indian market, as indicated by its recent communication to its customers.
Uncertainty Over Regulatory
The Indian market is experiencing growth, yet international cryptocurrency exchanges are encountering difficulties due to the ambiguous regulatory landscape and the Indian government’s stringent policies. Despite nearly four years of deliberation on a regulatory framework, the Indian authorities have yet to recognize or regulate the burgeoning digital currency industry formally.
In the absence of definitive timelines for the introduction of official cryptocurrency regulations in India, several established entities have shifted their businesses away from the nation, driven by the imposition of a hefty 30% tax on cryptocurrency earnings and a 1% Tax Deducted at Source (TDS) on every cryptocurrency transaction.
The Indian government has refrained from establishing a concrete legal structure for digital currencies, with the country’s finance minister recently stating in an interview that cryptocurrencies cannot be equated with traditional fiat currencies.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
