According to a report by Cointelegraph, cryptocurrency exchange OKX has sent a notice to its Indian users on March 21, requesting them to close their accounts and withdraw their funds by April 30. The cryptocurrency exchange stated that local regulatory obstacles were the key reason behind this decision.
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OKX to Exit India by the End of April
Cryptocurrency Regulations Remain Unclear, but Heavy Taxation in Place
In the notice sent to Indian users on March 21, OKX requested them to close their accounts and redeem their funds by April 30. The cryptocurrency exchange stated that local regulatory obstacles were the key reason behind this decision.
After the authorities blocked its website and application in January, OKX implemented a new registration process and conducted strict Know Your Customer (KYC) checks. However, it seems that the pressure from the regulators eventually led to the decision to cease operations in India.
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The Financial Intelligence Unit India (FIU IND), a department under the Indian Ministry of Finance, had issued compliance notices to nine prominent offshore exchanges at the end of last year, accusing them of illegal operations and violating anti-money laundering regulations. Binance, Kraken, Huobi, among others, were named in the list, but OKX was not included at that time.
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India Delists Binance, Kraken, and Nine Other Exchanges, Website, Google, Apple Stores Blocked
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Although India has no timeline for when it will enact formal cryptocurrency regulations, it has been imposing a 30% capital gains tax on cryptocurrencies and NFTs since last year, as well as a 1% transaction tax on each cryptocurrency trade.
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India’s Regulations on NFTs and Cryptocurrencies to Impose 30% Capital Gains Tax, Digital Rupee Expected Before 2023
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