Crypto exchange OKX is ceasing services in India. In an email to clients on Thursday, OKX announced that it is stopping operations for customers in India and urged them to go ahead and withdraw their money before the end of April.
The action comes after an Indian government body claimed that numerous cryptocurrency exchanges were operating unlawfully in the South Asian market, leading Apple and Google to remove the OKX app from the PlayStore in the country.
The government organization Financial Intelligence Unit listed OKX as one of the apps operating “illegally” in India, although it did not list Binance, Kraken, Huobi, or Gate.io.
Customers in India have been urged by OKX to liquidate all open margin positions and remove all monies by April 30. For its action, the cryptocurrency exchange blamed “local regulations.”
In March of last year, India included cryptocurrencies in its framework for combating money laundering and counter-financing of terrorism. Numerous companies, including regional exchanges CoinSwitch and CoinDCX, had registered with the FBI, but as of late last year, the FBI reported that several foreign exchanges were still breaking the law.
It appeared that some dealers from India had rushed to international Bitcoin platforms to avoid paying taxes. In 2022, India started taxing virtual currencies, with a 30% gain-related tax and a 1% transaction-related deduction.
Many international platforms haven’t followed the strict know-your-customer procedures that India-based cryptocurrency exchanges still enforce before onboarding new members. Coinbase ceased accepting new users in India the previous year.
Related: Binance ends Naira Services in Nigeria
Crypto exchange OKX is ceasing services in India barely a month after the Nigerian government went after Binance and forced the exchange platform to cease operations in Nigeria owing to accusations bordered around the depreciation of the Naira. This proves just how much the government is intent on regulating cryptocurrency to the best of its ability.