Cryptocurrency exchange OKX has informed its users in India about discontinuing its services in the country, citing local regulations as the reason behind this decision. According to an email notification sent on March 21st, OKX urged its Indian users to close their positions by the end of April.
This development comes amidst an ongoing crackdown by the Indian government on global crypto exchanges operating within its jurisdiction.
India has been intensifying its efforts to combat illegal operations by exchanges, with the Financial Intelligence Unit (FIU) of the Indian Finance Ministry issuing notices to nine exchanges in December last year.
Notable exchanges on the list included Binance, Kraken, MEXC Global, and others, resulting in the removal of their apps from the Play Store and App Store platforms in India.
Despite not being included in the FIU’s list, OKX has now decided to discontinue its services in India. Over the past decade, India has witnessed the emergence of numerous crypto exchanges. However, global exchanges operating outside the country’s regulatory framework continued to attract a significant user base.
This was partly due to strict taxation measures implemented since 2022, including a 30% tax on profits and a 1% deduction on each crypto transaction.
Market participants in India eagerly awaited updates on crypto regulation and taxation, especially after the government expressed interest in cooperative efforts with G20 nations to establish a global regulatory framework for cryptocurrencies.
However, during the interim budget address in February this year, India’s finance minister, Nirmala Sitharaman, did not provide any updates.
Despite the ongoing market recovery, the Indian government remains cautious, as highlighted by Sitharaman’s recent comments at the India Today Conclave. The minister reiterated concerns about illicit activities such as terror funding and drug financing, emphasizing the need for consistent regulations across nations to address these challenges.
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