Crypto Exchange OKX Halts Services In India Due To Regulatory Issues

Cryptocurrency exchange OKX has notified its users in India that it will be suspending its services in the country due to regulatory issues.

The exchange has instructed its users in India to close all margin positions, as well as positions in perpetuals, futures, and options, and to withdraw all funds by April 30, 2024, 12 AM UTC.

“After this date, we’ll restrict your account. You’ll still be able to withdraw funds, but other functions will become unavailable. Your funds will remain safe and available in your account until you withdraw them,” the exchange said in a notification to users.

The development was first reported by Moneycontrol.

OKX’s move comes months after it, along with several other offshore exchanges, received show-cause notices from the finance ministry for failing to comply with India’s anti-money laundering laws. Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex were among the other offshore exchanges which were served notices for operating unlawfully in India.

The exchanges were accused of not registering with the Financial Intelligence Unit-India (FIU-IND) and failing to adhere to the provisions outlined in the Prevention of Money Laundering Act (PMLA), 2002.

“OKX Exchange is currently not available in India due to local laws and regulations. If you do not reside in India, you may continue using OKX Exchange with a valid government-issued ID. Our portal to Web3, OKX Wallet, can still be accessed,” a message on OKX’s website reads.

The development comes at a time when high taxation and other regulatory issues have hit the Indian crypto ecosystem hard. This also resulted in companies like Polygon, CoinDCX, and WazirX reducing their workforce and laying off about 250 employees.

Meanwhile, some crypto startups, including Pillow, Flint, and WeTradede, shut their operations.

Last year, it was reported that Coinbase also discontinued all services for its users in India. The decision likely came after a routine review, during which some accounts were found to be non-compliant with the company’s updated standards. . However, Coinbase clarified  later that the notice was aimed at specific users who were found to be in breach of the exchange’s updated standards, not all Indian customers,

Indian crypto exchanges have heaved a sigh of relief following the recent rally in Bitcoin. The cryptocurrency surged to its all-time high of $72,000 on March 13, followed by another peak at $73,000 on March 14. As a result, Indian crypto exchanges have been seeing a significant uptick in demand for cryptocurrencies since February, with trading volumes on major exchanges skyrocketing by 150-250%.