Following the issuance of compliance letters by the local regulators, OKX was one of the nine international cryptocurrency exchanges prohibited in India. About three months after nine international cryptocurrency exchanges received compliance letters from the Financial Intelligence Unit (FIU) of the Indian Ministry of Finance, OKX is shutting its operations in India.
Indian consumers received a notification from OKX on March 21 asking them to terminate their accounts and retrieve their money before April 30. The primary rationale for the move was given by the cryptocurrency exchange as local regulatory obstacles.
Amid Crypto’s Booming Indian Market, OKX Faces Difficulty To Navigate
OKX introduced a new registration procedure with stringent Know Your Customer checks after the government suspended its website and application in January. Nevertheless, the letter it sent to consumers implies the exchange will no longer be active in India.
Despite being a booming market, India continues to be a challenging area for international cryptocurrency exchanges to operate in because of unclear legal requirements and stringent government policies. Despite nearly four years of talks on a regulatory framework, the Indian government doesn’t seem to be willing to recognize or even slightly regulate the nascent cryptocurrency sector. Although there is no timeframe for India to enact official crypto rules, several well-established players have been compelled to relocate due to the high 30% tax on crypto revenue, which does not allow for loss mitigation, and the 1% tax deducted at source (TDS) on each crypto transaction.
