OKX Halts Services in India Amid Regulatory Pressure
Crypto Exchange Advises Users to Withdraw Funds by April 30
In a recent email to its Indian customers, cryptocurrency exchange OKX announced its decision to discontinue 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 move.
Government Agency Flags Illegal Operations of Crypto Exchanges
The Financial Intelligence Unit (FIU), an Indian government agency, recently identified several crypto exchanges, including Binance, Kraken, Huobi, and Gate.io, as operating illegally in the country. Although OKX was not named in the FIU’s public statement, the exchange’s decision to cease services follows the removal of its app from the Apple App Store and Google Play Store in India.
India’s Crypto Regulations and Taxation
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. Additionally, India introduced a 30% tax on virtual currency gains and a 1% deduction on each crypto transaction in 2022, prompting many traders to seek out global platforms to avoid these taxes.
OKX to Continue Offering DeFi Web3 Services
Despite the cessation of its CeFi trading services in India, OKX has stated that its DeFi Web3 services will remain available to developers and creators in the country. An OKX spokesperson assured customers that their assets will remain secure on the platform as they offboard.
“We recently sent an email to customers in India who had historical CeFi accounts on OKX, and we are helping them close out those accounts. As we offboard those customers their assets will remain secure on the OKX platform. This decision was made in response to recent local regulations directed at offshore exchanges that make CeFi trading available in India. OKX’s DeFi Web3 services remain available to developers and creators in India.”
KuCoin Becomes First Global Crypto Exchange to Comply with India’s FIU
In a recent development, KuCoin announced that it has become the first global crypto exchange to comply with India’s FIU regulations. The exchange pledged to support local banks and fiat entities in India while investing in educating the market about the potential of cryptocurrencies.
“This is not just a milestone for KuCoin but a monumental stride for India’s crypto market and the global crypto industry. It symbolizes our dedication to expanding our global footprint and our commitment to the Indian market—where the potential for crypto is immense and the future looks bright.”
As the Indian crypto landscape continues to evolve, exchanges and users alike must navigate the complex regulatory environment to ensure compliance and foster the growth of the industry in the country.
5 Comments
So OKX decides to hit the road while KuCoin nods along with the official tune!
Looks like OKX didn’t fancy the regulatory dance in India, but KuCoin’s stepping in tune!
OKX leaves, but KuCoin plays by the rules; same game, different strategies!
OKX waves goodbye to India; KuCoin, on the other hand, decides to cozy up with the rules.
OKX bails out, meanwhile KuCoin’s playing it cool by ticking the regulatory boxes.