OKX Halts Services for Indian Users Amidst Regulatory Pressure
Crypto Exchange Advises Customers to Withdraw Funds by April 30th
In a recent email to its Indian customers, cryptocurrency exchange okx.com/” target=”_blank” rel=”noopener”>OKX announced that it will be discontinuing its services in the country. The platform has urged users to close all active margin positions and withdraw their funds by the end of April, citing local regulations as the reason behind this decision.
Government Agency Flags Illegal Operations of Crypto Exchanges
The move comes on the heels of Apple and Google removing the OKX app from their respective app stores in India. This action was prompted by a statement from the Financial Intelligence Unit (FIU), an Indian government agency, which alleged that several crypto exchanges, including Binance, Kraken, Huobi, and Gate.io, were operating illegally in the country. Although OKX was not explicitly named in the FIU’s public statement, the exchange has decided to comply with local regulations.
India’s Evolving Crypto Regulations and Tax Policies
In March 2022, India brought cryptocurrencies under the purview of its anti-money laundering and counter-financing of terrorism framework. While local exchanges like CoinSwitch and CoinDCX registered with the FIU, many international exchanges remained non-compliant with the law, as stated by the FIU late last year.
India’s taxation policies on virtual currencies, introduced in 2022, have also played a role in driving traders to global cryptocurrency platforms. The country imposes a 30% tax on crypto gains and a 1% deduction on each crypto transaction, leading many users to seek alternatives to avoid these taxes.
Differing KYC Standards Between Local and Global Exchanges
While Indian crypto exchanges have maintained stringent know-your-customer (KYC) verification processes for onboarding new users, the same cannot be said for all global platforms. This discrepancy in KYC standards has led to some users opting for international exchanges. In a similar move, Coinbase stopped signing up consumers in India last year.
As the Indian crypto landscape continues to evolve, it remains to be seen how other global exchanges will navigate the country’s regulatory framework and tax policies.
1 Comment
Well, I guess the crypto roller coaster in India just hit another loop!