OKX Ceases Operations in India, Instructs Users to Withdraw Funds by April End

Whitney Anderson
Whitney Anderson
Technology Writer
Last updated: May 14, 2024
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Cryptocurrency exchange OKX is wrapping up its operations for Indian users. The company informed its customers through an email to withdraw their investments before the month ends. This step was taken shortly after both Apple and Google removed the OKX app from their platforms in India, a move prompted by an advisory from an Indian government body. This advisory highlighted the unauthorized operation of several cryptocurrency exchanges, including big names like Binance, Kraken, Huobi and Gate.io, in India, though OKX wasn’t directly mentioned.

In the communication to its Indian clients, OKX specified the need to settle all active transactions and extract their funds by April 30, attributing this decision to the prevailing “local regulations.” Adding to this, OKX mentioned, “After this date, we’ll restrict your account to withdrawals only,” as part of their emailed guidance.

India introduced cryptocurrencies into its regulatory framework targeting money laundering and terrorist financing last March. This led to numerous entities, like the homegrown CoinSwitch and CoinDCX, aligning with the Financial Intelligence Unit’s requirements. However, several international platforms have lagged behind in adhering to these regulations, per the FIU’s disclosures last year.

The popularity of global cryptocurrency platforms among Indian traders has been growing, presumably as a tactic to circumvent the tax implications introduced on virtual currencies in 2022. The Indian government’s tax measures include a 30% levy on cryptocurrency profits and a 1% tax deduction at source for every transaction.

Despite the severe user verification protocols followed by crypto exchanges based in India, many international counterparts have been observed to be more lenient. This leniency led Coinbase to halt new user registrations from India last year.

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Whitney Anderson
Whitney Anderson
Whitney Anderson is a dynamic technology writer and content creator known for her quick learning and strong interpersonal skills. With a passion for community service and travel, she excels in crafting engaging tech content and leading diverse teams. Whitney is eager to bring her tech expertise and creativity to make a significant impact in your organization.

Why Trust Us

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