OKX cryptocurrency exchange has announced the closure of its services in India, marking the end of its operations in the country. This decision comes nearly three months after the Financial Intelligence Unit (FIU) of the Indian Ministry of Finance issued compliance notices to nine foreign crypto exchanges.
In a notice sent to Indian users on March 21, OKX instructed them to close their accounts and withdraw their funds before April 30. Citing local regulatory hurdles as the primary reason behind the decision, OKX emphasized the challenges posed by regulatory compliance in India.
India’s regulatory environment for cryptocurrency exchanges remains uncertain and challenging. Despite being a thriving market, the lack of clear regulatory guidelines and strict government actions make it difficult for foreign exchanges to operate in the country.
OKX faced obstacles such as website and application blocks after the authorities took action in January. Despite implementing a new registration process with stringent Know Your Customer (KYC) checks, the exchange has decided to cease operations in India.
The Indian government has been engaged in discussions regarding cryptocurrency regulations for nearly four years. However, there is still no clear regulatory framework in place. The government’s stance on treating crypto differently from fiat currencies has hindered the development of comprehensive regulations.
High taxes on crypto income, along with a lack of provisions to offset losses and a 1% tax deducted at source (TDS) on each transaction, have prompted many established players to relocate their operations. The absence of clear regulations has contributed to uncertainty in the market.
In a recent interview, the Indian Finance Minister reiterated the government’s stance on treating crypto differently from fiat currencies. However, market participants advocate for clearer regulations similar to those in the traditional stock market, rather than equal treatment with national fiat currencies.
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