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OKX, a leading cryptocurrency exchange, has announced the termination of its services for users in India.
The decision follows regulatory pressures and the removal of its app from major app stores in the country.
Users have been advised to withdraw their funds by the end of next month.
Regulatory crackdown forces OKX out
OKX’s move comes in response to mounting regulatory challenges and heightened scrutiny from Indian government agencies.
Recently, news broke that both Google and Apple had removed the OKX app from their platforms in India, indicating a tightening regulatory environment for cryptocurrency exchanges.
In an email sent to its customers in India, OKX urged users to take immediate action and withdraw their funds from the platform by April 30.
⚠️ @okx shuts services in India due to regulatory hurdles. Users urged to withdraw by April 30.
Have you ever used OKX for your cryptocurrency transactions?#Socratescom #OKX #CEX pic.twitter.com/68poJBRcUE— Socrates (@Socrates_global) March 21, 2024
The exchange emphasized compliance with “local regulations” as the primary reason behind this decision.
While OKX was not explicitly named in the Financial Intelligence Unit’s (FIU) public statement, the agency’s crackdown on several other cryptocurrency exchanges operating “illegally” in India has undoubtedly sent shockwaves throughout the industry.
Crypto regulatory landscape in India
The Indian government has been increasingly stringent regarding cryptocurrency regulations.
The FIU brought cryptocurrencies under the ambit of anti-money laundering and counter-financing of terrorism regulations in March last year.
Despite this, several international exchanges, including OKX, have struggled to comply with the evolving regulatory framework.
Furthermore, the taxation of virtual currencies in India, with a hefty 30% tax on gains and a 1% deduction on each crypto transaction, has added to the complexities faced by cryptocurrency traders and exchanges alike.
Many traders in India have sought refuge on global crypto platforms, seeking to evade taxes and navigate the uncertain regulatory landscape.
Generally, OKX’s decision to cease operations in India underscores the challenges faced by cryptocurrency exchanges in navigating regulatory uncertainties.
The post OKX halts services in India, asks users to withdraw funds appeared first on Invezz
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