The cryptocurrency market in India has been dealt a significant setback as OKX, a prominent crypto exchange platform, has terminated its operations within the region. The company has informed its user base that all funds must be withdrawn by the end of April, as per a report by Techcrunch.

Following the delisting of OKX’s mobile application from the App Store and Google Play Store in India, this development further perturbs the cryptocurrency landscape.

The Financial Intelligence Unit of India, a governmental body, has declared that several cryptocurrency exchanges have been functioning without legal authorization in the nation.

Although OKX was not specifically named by the FIU in its disclosure, the statement did list other exchanges such as Binance, Kraken, Huobi, and Gate.io as engaging in unauthorized operations within Indian boundaries.

In response to regional legal stipulations, OKX has urgently advised its Indian clientele to settle their open margin trades and withdraw their crypto holdings by the deadline of April 30.

India enforced laws pertaining to anti-money laundering and terrorism financing in relation to cryptocurrencies in the previous year. Many domestic exchanges such as CoinSwitch and CoinDCX adhered to these regulations, while a number of international platforms did not, as per the FIU’s announcements from the prior year.

Some traders in the Indian market have turned to international crypto platforms to bypass tax obligations. India introduced a tax regime on virtual currencies in 2022 that imposes a 30% tax on gains and levies a 1% transaction fee on each cryptocurrency trade.

While Indian crypto exchanges enforce meticulous verification processes for new members, several global exchanges have laxer requirements. For example, Coinbase ceased new user registrations from India the previous year.