In a significant development within India’s crypto landscape, OKX, a prominent cryptocurrency exchange, has announced the cessation of its services in the country, citing regulatory constraints. The move comes amidst heightened scrutiny from regulatory authorities, leading to a wave of actions against crypto platforms, including the removal of related apps by tech giants Apple and Google.
With a user base exceeding 50 million worldwide, OKX has established itself as a prominent player in the global cryptocurrency exchange arena, with India emerging as a key market for the platform.
The exchange issued a notice advising Indian users to withdraw all funds from their accounts by April 30, marking the end of its operations in the region. Users have been instructed to close all margin positions, perpetuals, futures, and options, in addition to redeeming funds from various products offered by the exchange.
The move by OKX follows the removal of several cryptocurrency apps from major app stores by Apple and Google, indicative of a broader crackdown on crypto-related activities in India. Notably, the Financial Intelligence Unit (FIU) of India had previously identified these exchanges as operating unlawfully within the country, issuing compliance Show Cause Notices to nine offshore crypto service providers.
Despite the absence of explicit regulations governing crypto assets in India, the government has intensified its scrutiny of the sector. Finance Minister Nirmala Sitharaman recently reiterated that cryptocurrencies cannot be considered currencies, highlighting the need for a regulatory framework.
While India has engaged in discussions at the international level, including within the G20 framework, regarding the regulation of crypto assets, concrete measures are yet to materialize. Sitharaman emphasized the importance of a unified approach among nations to prevent illicit activities such as money laundering and terrorism financing facilitated by cryptocurrencies.
As the government deliberates on formulating a regulatory framework, users are advised to adhere to the exchange’s instructions and withdraw their funds within the stipulated timeline. The evolving regulatory environment in India continues to shape the trajectory of cryptocurrencies within the nation, with stakeholders closely monitoring developments for further clarity.