- OKX announced it will cease operations in India amid the country’s regulatory crackdown on crypto exchanges. The exchange directed Indian users to close positions before the end of April.
- India has intensified scrutiny of crypto exchanges, with global players continuing to attract local traders despite the growth of domestic platforms. Exchanges operating outside of India’s AML and CTF rules have remained popular.
- The future of crypto trading in India remains uncertain, with major exchanges like OKX shutting down and others potentially facing regulatory action. Traders may shift toward compliant domestic platforms.
OKX, a major cryptocurrency exchange, has announced that it will be ceasing operations in India due to regulatory issues in the country. This comes as the Indian government continues its crackdown on crypto trading platforms operating illegally within its borders.
OKX Directs Indian Users to Close Positions
In an email sent to users on March 21st, OKX stated that its services in India would be discontinued. The exchange urged users in the country to close out their positions by the end of April.
This news comes as a surprise, as OKX was not included in the list of exchanges targeted by India’s Financial Intelligence Unit (FIU) last December. The FIU had sent notices to major exchanges like Binance, Kraken, and KuCoin demanding they register with Indian authorities.
India Intensifies Crypto Exchange Scrutiny
Over the past decade, many crypto exchanges have emerged in India, with global players continuing to attract local traders despite the growth of domestic platforms.
International exchanges operating outside of India’s anti-money laundering (AML) and counter terrorism financing (CTF) rules have remained popular due to strict taxation measures imposed on crypto profits since 2022.
During her latest budget speech, Finance Minister Nirmala Sitharaman did not provide any updates on crypto regulation, disappointing many expecting reliefs. While aligning with G20 nations on establishing a global crypto framework, India has maintained a cautious stance regarding potential illicit uses.
The Future Remains Uncertain
For now, the future of cryptocurrency trading in India remains uncertain. With OKX shutting down and other major exchanges potentially facing regulatory action, traders may shift toward domestic platforms that are fully compliant with local laws.
