- Please close your accounts and withdraw your assets before April 30th, OKX said.
- The Indian government still hasn’t acknowledged or regulated the growing crypto sector.
Crypto exchange OKX has decided to end its operations in India, about three months after nine international exchanges were sent compliance letters by the Financial Intelligence Unit (FIU) of India’s Ministry of Finance.
Please close your accounts and withdraw your assets before April 30th, OKX said in a notification addressed to Indian customers on March 21. The main reason for the move, according to the crypto exchange, was local regulatory constraints.
Within two weeks of the warning, the FIU asked the Ministry of Electronics and Information Technology to restrict the websites of the crypto exchanges that had been warned. In response to the January restrictions, OKX added more Know Your Customer checks into its registration process; yet, the exchange seems to be pulling out of the Indian market, according to its warning to users.
Lack of Clarity Over Regulation
Although the Indian industry is booming, global crypto exchanges still have challenges navigating the country’s murky regulatory waters and heavy-handed government policies. Despite almost four years of talks over a regulatory framework, the Indian government still hasn’t acknowledged or regulated the growing cryptocurrency sector.
Despite the lack of clarity over when India would implement official crypto rules, several well-established players have relocated their operations out of the country due to the high 30% tax on crypto revenue and the 1% tax deducted at source (TDS) on each crypto transaction.
The Indian government has not provided a clear legal framework for cryptocurrencies because, according to a recent interview by the country’s finance minister, they cannot treat them like fiat currencies.
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