OKX will suspend services in India, requiring users to withdraw their funds by April 30

OKX cryptocurrency exchange is shutting down its services in India after the Financial Intelligence Unit (FIU) of India's finance ministry issued compliance notices to nine foreign crypto exchanges.

In the year In a notice sent to Indian users on March 21, OKX asked users to close their accounts and refund their money before April 30. The crypto exchange cited local regulatory hurdles as a key reason behind the decision.

FIU has asked the Ministry of Electronics and Information Technology to block the websites of known crypto exchanges within two weeks of the announcement.

After authorities blocked the website and application in January, OKX has implemented a new registration process that strongly checks your customer. However, its notice to users suggests that the exchange will not work in India.

Despite being a developed market, India has remained a difficult domain for foreign crypto exchanges to navigate due to the lack of clear regulatory guidelines and strict government measures.

Although discussions regarding a regulatory framework have been going on for nearly four years, the Indian government appears to have no interest in recognizing or subjecting the emerging crypto market to legal regulation.

While there is no timetable for when India will get formal crypto regulations, the maximum tax of 30% on crypto income with no provision to offset the loss with a 1% tax deducted at source (TDS) on every crypto transaction, has forced several established ones. Players to relocate their base.

In a recent interview, the Indian Finance Minister said that crypto cannot be treated in the same way as fiats, which is why the government has not yet proposed a clear regulatory framework.

FM Nirmala Sitharaman's latest statement on Crypto Regulation.$OpSec #zerodha #WazirX pic.twitter.com/sUaoSIIg4t

— Jackson Chakma (@jackk_8) March 15, 2024

However, this is a normal response of government bodies around the world and has nothing to do with regulating the crypto market, because market participants are not asking for equal weight to national fiat, but clear rules similar to the traditional stock market.

OKX has not yet responded to Cointelegraph's request for comment.