OKX, a cryptocurrency exchange, is shutting down its services in India following compliance notices from the Financial Intelligence Unit (FIU) of the Indian Ministry of Finance to nine foreign crypto exchanges. Users in India received a notification on March 21 from OKX instructing them to close their accounts and withdraw funds by April 30 due to regulatory challenges in the country.

The FIU requested the Ministry of Electronics and Information Technology to block the websites of the mentioned crypto exchanges within a fortnight of issuing the notice. Despite OKX's efforts to comply with stricter Know Your Customer checks after facing website and app blocks in January, the exchange has decided to cease operations in India according to its recent communication with users.

India poses difficulties for international crypto exchanges due to ambiguous regulations and stringent government actions, making it a complex market to navigate. The lack of clear regulatory frameworks and high taxes like the 30% tax on crypto income without provisions for losses and a 1% tax deduction at source on each transaction have led many established players to relocate their operations elsewhere.

The Indian government has been deliberating on crypto regulations for nearly four years but has not yet established a comprehensive regulatory structure. The Finance Minister highlighted in a recent interview that cryptocurrencies cannot be treated like traditional currencies, indicating the government's struggle to define a clear regulatory path for the emerging crypto market. While global government bodies often cite similar reasons for delaying crypto regulations, market participants are advocating for clearer guidelines akin to those governing traditional financial markets rather than equal treatment with national fiat currencies.