KEY POINTS
- Users can still withdraw their funds after April 30 but all other services will be discontinued by then
- India has been cracking down on crypto platforms that it deems are non-compliant with its anti-money laundering rules
- The country blocked nine crypto firms in December, including Binance and Kraken
Global cryptocurrency spot and derivatives exchange OKX has announced that it no longer provides services for users in India, as the country cracks down on crypto platforms.
"Due to local regulations," users in India have been urged to close all their margin positions, positions in perpetuals, options and futures, and redeem all of their funds from the following Grow products: Jumpstart, Loan, and Earn. They also need to withdraw all funds from their OKX accounts by April 30. "After this date, we'll restrict your account," the exchange told users in an email shared by some users on X (formerly Twitter) Thursday.
The exchange noted that users can still withdraw their funds after April 30, but other functions will be disabled. "Your funds will remain safe and available in your account until you withdraw them," it said.
#OKX to cease operations in India. pic.twitter.com/HBkgmUMEZA
— Muneeb🎖️ (@MirMuneeb55) March 21, 2024
OKX's decision was made about a year after the Indian government brought digital asset service providers under its anti-money laundering framework. Under the framework, crypto exchanges that seek to operate in the country have been required to register with the Financial Intelligence Unit India (FIU IND) and comply with the agency's rules.
"The Virtual Digital Asset service providers are required to comply with the various provisions of the PMLA (Prevention of Money-Laundering Act), the rules made thereunder, and the guidelines issued by Director, FIU IND," the finance ministry unit said in a memo sent to "chief compliance officers" of crypto and digital asset service providers in July.
As per the memo from FIU IND, the crypto exchanges should submit host of documents including balance sheets, income tax return documents, and a "self-declaration to the effect that no proceedings have been initiated by/are pending" with law enforcement authorities against the entity or its executives among others.
In December, FIU IND blocked nine crypto firms that it said were "operating illegally without complying with the provisions of the PML Act in India." Among them were Binance, the world's largest crypto exchange by trading volume, Kraken, and Kucoin. OKX wasn't in the list of exchanges whose URLs were blocked in India.
Meanwhile, OKX delisted Tether (USDT) pairs in the European Union ahead of the bloc's adoption of its Markets in Crypto-Assets Regulation (MiCA) later this year. OKX, the world's second-largest crypto exchange by trading volume, told users that "the availability of USDT (Tether) pairs in your current region has been continued," due to "regulatory requirements."
