Users Advised to Withdraw Funds by April 30 as Offshore Platforms Face Scrutiny
Cryptocurrency exchange OKX has informed its users in India of its decision to suspend services in the country due to regulatory challenges. This move adds to the growing list of offshore exchanges encountering obstacles in India’s crypto landscape.
Users have been directed to close all margin positions and withdraw funds from the platform by April 30, 2024, 12 AM UTC. Failure to comply will result in restricted account functionalities, although fund withdrawals will remain accessible.
The decision follows the issuance of show-cause notices to several offshore exchanges, including OKX, by the finance ministry for non-compliance with anti-money laundering regulations. Notable exchanges such as Binance, Kucoin, and Huobi were also among those served notices for operating without proper registration or adherence to regulatory provisions.
In response, OKX clarified that its services are suspended in India due to local laws and regulations. However, users outside India can continue using the platform with valid government-issued identification.
This development adds to the challenges faced by the Indian crypto ecosystem, marked by high taxation and regulatory uncertainties. Recent layoffs in major crypto companies like Polygon and CoinDCX highlight the impact of these challenges on the industry’s workforce.
Furthermore, the decision echoes similar actions taken by other exchanges in the past, such as Coinbase discontinuing services for Indian users. Although Coinbase later clarified that the move targeted specific non-compliant accounts, it reflects the heightened scrutiny faced by crypto platforms operating in India.
Despite regulatory hurdles, Indian crypto exchanges have experienced a surge in demand following Bitcoin’s recent rally to all-time highs. With trading volumes soaring, the resilience of the Indian crypto market amid regulatory uncertainties underscores the growing interest and adoption of cryptocurrencies in the country.
