In a recent development, Seychelles-based firm OKX, one of the largest cryptocurrency exchanges in the world, has announced the shutdown of its services in India.
According to recent reports, the decision comes in response to regulatory hurdles faced by the exchange in the country. Users were notified of the closure through a notice sent on Thursday, stating that OKX “is no longer providing services to the users in India” due to local regulations.
OKX Announces Exit From Indian Crypto Market
The notice from OKX urged users to take specific actions before the deadline. Users were instructed to close all margin positions, including perpetual, futures, and options contracts, and redeem funds from staking products.
Additionally, users were advised to withdraw all funds from their accounts. After April 30, 2024, at 2 AM UTC, account functionalities would be restricted, although fund withdrawals would still be permitted.
OKX’s decision to exit the Indian market follows the issuance of a compliance notice by the Indian Financial Intelligence Unit (FIU) against nine foreign cryptocurrency exchanges, including Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.
The FIU alleged illegal operations and violations of local anti-money laundering (AML) regulations by the exchanges above. While the FIU blocked access to these exchanges’ websites with a two-week notice, some continued providing services to existing customers through apps.
It is noteworthy that OKX was not among the exchanges named by the FIU in its compliance notice. However, the exchange had previously strengthened its know-your-customer (KYC) processes in India. Despite these efforts, OKX has now decided to withdraw its services completely from the country.
Navigating Regulatory Landscapes
Despite shutting down its operations in India, OKX is focusing on strengthening its operations in other regions. As previously reported by Bitcoinist, the exchange has obtained licenses in Singapore and Dubai, demonstrating its interest in expanding its services globally. In addition, OKX has launched trading in Turkey’s local currency.
The closure of OKX’s services in India highlights the challenges cryptocurrency exchanges face due to evolving regulatory landscapes. As governments worldwide continue to formulate their policies regarding cryptocurrencies, exchanges have to navigate a complex regulatory environment to ensure compliance and provide services to their users.
While OKX emphasizes the safety of user funds and assures that withdrawals will remain accessible, Indian users are encouraged to follow the exchange’s guidelines to secure their assets.
As of the current time, the total valuation of the crypto market cap is $2.44 trillion. This comes after a significant decline to $2.2 trillion on Wednesday, following a peak of $2.7 trillion, which hadn’t been reached since November 2021.
Bitcoin (BTC), on the other hand, has made progress in minimizing its losses. After experiencing a steep drop to $60,900, it is now attempting to regain stability above the $66,700 level.
Featured image from Shutterstock, chart from TradingView.com