OKX Exits India’s Crypto Space Failing to Meet Legal Requirements

Mar22,2024



India has tightened its noose on crypto-related businesses, mandating sector firms to comply with certain legal requirements. Failing to comply with these regulations, crypto exchange OKEx has decided to exit India's crypto sector. The Seychelles-headquartered exchange informed its Indian community on March 21 that they should close their accounts on the platform before April 30. OKEx entered the Indian market between August and November last year. The company has been in business since 2017 and was founded by Star Ju.

The OKEx team has issued a notice to the Indian community saying that the exchange is no longer providing services in India.

“Due to local regulations, you are required to close all margin positions as well as positions in perpetuals, features and options. Redeem all funds from Groww products,” the exchange said in its notice.

From April 30, accounts of people based in India will be banned on OKEx. Although they will still be allowed to withdraw funds, all other functions will be closed.

“Your funds will remain safe and available in your account until you withdraw them,” the exchange said.

It is not yet clear whether OKEx's exit from India's crypto sector is temporary until the company comes into compliance with regulations or it is making a long-term exit. India's financial authorities, to make the crypto sector safer for people to engage with, are adding layers of regulations for players in the sector to comply with.

In December 2023, the Financial Intelligence Unit India (FIU) issued show cause notices to nine offshore companies and asked them to show proof that they were complying with all Indian regulations. These companies are – Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex.

The FIU and the Finance Ministry of India are trying to ensure that all crypto-related companies comply with the Anti-Money Laundering and Counter-Financing of Terrorism (AML-CFT) framework under the provisions of the Prevention of Money Laundering Act (PML). Has been. Act in March 2023. Soon after the announcement, Binance and Kraken apps disappeared from Apple's App Store and Google's Play Store in India.

In times to come, India is expected to deploy more layers of regulations on the crypto sector following the regulatory roadmap finalized by the G20 group last year.


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