Claim $500OKX Exits India And Urges Customers To Withdraw Funds Before April 30
Highlights
- OKX crypto exchange is gearing up to exit India.
- The move comes amid increased regulatory scrutiny over foreign crypto exchanges in the country.
- OKX advised customers to initiate withdrawals before the ye specified deadline.
The OKX cryptocurrency exchange has announced its decision to cease operations in India. This decision comes nearly three months after the Financial Intelligence Unit (FIU) of India’s Ministry of Finance cracked down on crypto exchanges. The FIU had issued compliance notices to nine foreign cryptocurrency exchanges and banned their URLs.
OKX Shuts Down Services In India
In a notice sent to Indian users on Thursday, March 21, OKX urged its customers to close their accounts and redeem funds before April 30. To justify the action, the CEX cited local regulatory hurdles as the primary reason behind the decision. The notice stated: “We regret to inform you that OKX is no longer providing services to users in India.”
Therefore, OKX users in India were instructed to close all margin positions, perpetuals, futures, and options. In addition, they were urged to redeem funds from Grow products like Earn, Loan, and Jumpstart before the deadline of April 30 at 12 a.m. ET.
Furthermore, OKX customers are also advised to expedite the withdrawal of their funds before the deadline to avoid any losses. Moreover, the OKX exchange assures users that their funds will remain safe and available until withdrawn.
OKX’s decision to exit the Indian market reflects the challenges posed by evolving regulatory frameworks and heightened enforcement measures. The exchange had applied for a new registration process with stringent Know Your Customer checks following a block on its website and application in January. However, OKX’s notice to users indicates that the exchange failed in attaining a successful registration.
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About FIU’s Crackdown On Overseas Crypto Exchanges
The FIU’s actions against foreign crypto exchanges began in late December 2023. The regulatory body sent notices to prominent platforms such as Binance, Gate.io, Kucoin, Huobi, and others. The FIU accused these exchanges of “operating illegally” in India through offshore entities. Hence, notices were issued under Section 13 of the Prevention of Money Laundering Act, 2002.
This move brought virtual digital asset service providers under the scrutiny of Anti Money Laundering/Counter Financing of Terrorism (AML-CFT) framework. Explaining the reason behind these notices, the FIU highlighted the failure of these companies to fulfill reporting obligations to the government despite being compliant with Indian law.
Moreover, FIU requested the Ministry of Electronics and Information Technology (MEITY) to block the websites of the notified crypto exchanges within two weeks. Moreover, in January 2024, the website URLs and apps of Binance, OKX, KuCoin and others were blocked. In addition, the crypto exchange apps also disappeared from the Google Play Store and Apple App Store.
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