Key Takeaways:
- OKX has announced it will stop operations in India due to regulatory challenges, with an April 30 deadline for users to liquidate their positions.
- The exchange’s decision comes in response to India’s inclusion of digital asset providers in its AML framework, requiring registration with the FIU IND for continued operation.
- Despite not being among the exchanges flagged for operating without proper authorization, OKX’s withdrawal reflects the heightened scrutiny and regulatory hurdles facing crypto services in India.
Crypto service giant OKX has officially announced its decision to cease operations in India, prompting immediate action from its customer base.
Users have been given a deadline of April 30 to finalize their dealings, emphasizing the urgency for clients to liquidate their positions within this timeframe.
The OKX exchange is ceasing services in India and asking users to withdraw funds by April 30th. pic.twitter.com/crSAdsJQq3
— PRO BLOCKCHAIN (@PRO_BLOCKCHAIN) March 21, 2024
In a decisive move attributed to regulatory measures within the nation, OKX communicated to its Indian clientele the necessity to conclude all trading activities by the end of April.
Following this deadline, users will be limited to merely withdrawing their existing funds, marking a significant shift in the exchange’s operational capabilities in India.
This development is part of OKX’s compliance efforts with India’s evolving regulatory landscape, which saw digital asset providers being integrated into the anti-money laundering (AML) framework as of March 2023.
To continue operations within India, exchanges are required to register with the Financial Intelligence Unit India (FIU IND) and adhere to its regulatory standards.
By the close of 2023, OKX had not aligned with the 28 entities that had successfully registered under these guidelines.
The backdrop to OKX’s withdrawal is India’s intensified scrutiny over crypto exchanges, particularly those perceived to be operating without proper authorization.
In a significant move, FIU IND had previously flagged nine exchanges, including industry heavyweights like Binance, Kraken, and MEXC Global, for operating outside the legal framework, although OKX was not among those implicated.
#Crypto Exchange #Okx Shuts Down Services in India Due to Regulations — Advises Users to Withdraw All Funds https://t.co/JqcNJgLmgT
— Bitcoin.com News (@BTCTN) March 22, 2024
This scenario has seen some exchanges initiate dialogues with Indian regulatory bodies, aiming for a resolution to the challenges presented by the country’s stringent oversight.
The industry awaits the outcome of these discussions, as they could set important precedents for the future of crypto services in India.
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