Leading cryptocurrency exchange OKX has announced its decision to cease operations in India. About three months ago, the Financial Intelligence Unit of the Indian Ministry of Finance started cracking down on crypto exchanges. This decision came after this pressure. FIU had issued compliance notices to nine foreign cryptocurrency exchanges, including OKX.
Cryptocurrency exchange OKX shuts down its services in India
In a notice sent to Indian users, OKX urged its customers to close their accounts before April 30. Additionally, the exchange requested users to withdraw their funds. To justify the action, CEX cited local regulatory hurdles as the primary reason behind the decision. “We regret to inform you that OKX is no longer serving users in India,” the notice said. He stated:
Therefore, OKX users in India have been instructed to close all margin positions, standing positions, futures and options. The exchange asked its products such as Earn, Loan and Jumpstart to withdraw their funds by April 30. He also advised OKX clients to expedite withdrawing their funds before the deadline to avoid any losses. However, OKX assured users that their funds will remain safe and available until withdrawn.
What’s behind the scenes of the release?
cryptokoin.comAs you follow from , regulatory pressure on crypto exchanges is increasing. OKX’s decision to exit the Indian market reflects the challenges posed by evolving regulatory frameworks and increased enforcement measures. The exchange applied for a new registration process with strict Know Your Customer checks after its website and application were blocked in January. However, OKX’s notification to users indicates that the exchange was unable to achieve a successful registration.
FIU’s pressure on foreign cryptocurrency exchanges
FIU’s actions against foreign crypto exchanges began in late December 2023. The regulator has sent notices to leading platforms such as Binance, Coinbase, Kucoin, OKX, Huobi and others. The FIU accused these exchanges of “operating illegally” in India through offshore assets. He therefore made notices under Section 13 of the Prevention of Money Laundering Act 2002.
It made this move under scrutiny of the Anti-Money Laundering/Combating the Financing of Terrorism (AML-CFT) framework on virtual digital asset service providers. Explaining the reason behind these notifications, FIU emphasized that although these companies comply with Indian laws, they have not fulfilled their reporting obligations to the government. FIU asked the Ministry of Electronics and Information Technology (MEITY) to block the websites of the reported crypto exchanges within two weeks. Additionally, in January 2024, Binance blocked the website URLs and applications of Coinbase, OKX, KuCoin, and others. In addition, crypto exchange apps have also disappeared from the Google Play Store and Apple App Store.
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