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“OKX Cryptocurrency Exchange Halts Operations in India Amid Regulatory Challenges”

OKX cryptocurrency exchange is ceasing operations in India, a move coming nearly three months after the Financial Intelligence Unit (FIU) of the Indian Ministry of Finance issued compliance notices to nine foreign crypto exchanges.

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OKX Cryptocurrency

In a notification sent to Indian users on March 21, OKX Cryptocurrency requested that users close their accounts and withdraw funds before April 30. Citing local regulatory challenges as the primary rationale, the crypto exchange clarified its decision.

The FIU, in its directive, urged the Ministry of Electronics and Information Technology to block the websites of the identified crypto exchanges within a fortnight.

After facing website and application blocks in January, OKX Cryptocurrency implemented a revamped registration procedure involving stringent Know Your Customer checks. Nonetheless, the exchange’s communication to users implies its cessation of operations in India.

India remains a complex landscape for foreign crypto exchanges, despite its status as a lucrative market, owing to the absence of clear regulatory frameworks and stringent government interventions.

Despite ongoing discussions for nearly four years regarding a regulatory framework, the Indian government seems reluctant to formalize oversight of the burgeoning crypto market.

While an official timeline for crypto regulations in India remains uncertain, the imposition of a hefty 30% tax on crypto income, coupled with a 1% tax deduction at source (TDS) on each crypto transaction without provisions for offsetting losses, has prompted several established players to relocate operations.

In a recent interview, the Indian Finance Minister emphasized the distinction between crypto and fiat currencies, underscoring the government’s hesitation in providing a definitive regulatory framework.

However, this stance mirrors that of government bodies worldwide and does not directly address the need for regulation within the crypto market. Market participants seek clearer regulations akin to those governing traditional financial markets, rather than equivalent treatment of crypto and fiat currencies.

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