According to a recent revelation that has attracted considerable attention, OKX, a globally recognized crypto exchange, has announced its intention to withdraw its trading services in India.
Notedly, the trading platform's decision is coming a few months after the Financial Intelligence Unit (FIU) of India’s Ministry of Finance accused nine crypto exchanges of illegal operations in the country.
Consequently, OKX has issued directives to its Indian users, explaining the reason behind their unexpected decision and what customers must do to avoid losing their valuables.
Genesis Of The Regulatory Challenges Involving Exchanges In India
The whole issue hovering around crypto exchanges and the FIU started around late December 2023 after the regulatory body called out nine exchanges, including OKX, Binance, Coinbase, Kucoin, and other reputable exchanges, for operating illegally in India.
According to the warning delivered by the FIU, the implicated trading platforms were accused of violating anti-money laundering operations in India.
Consequently, the regulatory body ordered the Ministry of Electronics and Information Technology to block the websites of the affected exchanges within two weeks of releasing the notice.
After the websites became blocked, the affected exchanges sought to salvage the situation by engaging in round table discussions with the authorities involved.
On its part, OKX sought a means of returning to the Indian market by applying for a new registration process with strict Know Your Customer (KYC) checks. However, following the recent events, it becomes apparent that the exchange application to redeem the prevailing situation failed.
What Is Next For Indian OKX Customers?
According to an emailed notice sent out to its users earlier today, the crypto exchange urged customers to shut down all margin positions, which included perpetuals, futures, and options.
Going further, the trading platform instructed users to redeem all funds from Grow products: Earn, Loan, Jumpstart. Finally, customers should also endeavor to withdraw all funds from their accounts.
OKX added that users should complete all spotlighted tasks on or before April 30, 2024, 12 AM UTC, or risk losing their accounts.
Interestingly, the crypto exchange assured users that their funds would be safe and available until withdrawn, even after the deadline had elapsed.
How events unfold remains to be seen. Indian OKX users seem to have no choice but to compile with the latest directives while hoping for the best.
