OKX to Cease Operations in India, Requests Users to Withdraw Funds by April 30

OKX is suspending its services in India and asking users to withdraw funds by April 30. OKX was among nine foreign crypto exchanges blocked in India after local regulators issued compliance notices. Cryptocurrency exchange OKX is suspending its services in India, nearly three months after the Indian Finance Ministry's Financial Intelligence Unit (FIU) issued compliance notices to nine foreign cryptocurrency exchanges. In a notice to Indian users on March 21, OKX asked users to close their accounts and redeem funds by April 30. The crypto exchange cited local regulatory hurdles as the main reason for the decision.

After authorities blocked its website and app in January, OKX introduced a new registration process with strict “Know Your Customer” checks; However, the notice to users suggests that the exchange will no longer operate in India. Despite being a thriving market due to the lack of clear regulatory guidelines and strict government measures, India remains a difficult territory for foreign crypto exchanges to navigate. Although discussions over a regulatory framework have been ongoing for almost four years, the Indian government appears to have no intention of recognizing or subjecting the emerging crypto market to legal oversight.

While there is no timeline as to when India might get formal crypto regulations, the high tax of 30% on crypto income, without any provision for loss relief and a 1% withholding tax (TDS) on any crypto transaction, has led several established players to move their base elsewhere. The Indian Finance Minister said in the interview that cryptocurrencies cannot be treated the same as fiat currencies, which is why the government cannot yet offer a clear regulatory structure. However, this was a routineresponse from government authorities around the world and has nothing to do with regulating the cryptocurrency market, as market participants do not require cryptocurrencies to have the same weight as money. national trust, but clearer regulations, quite similar to those of the traditional securities market.

Also Read: Crypto Market Dips Marginally Even As Trading Volume Declines, Bitcoin Falls, Ethereum Up

GBTC Outflows Exceed $358 Million, Though One Theory Indicates a Possible Slowdown

Crypto asset manager Grayscale’s Bitcoin BTC $66,278 exchange-traded fund (ETF) has notched another day of high outflows as nearly $359 million exited the fund on March 21, but analysts think the exodus could soon be coming to an end. The Grayscale Bitcoin Trust’s (GBTC) March 21 net outflows of $358.8 million follows a massive week of outflows, with its $642 million on March 18 being the largest day on record, per Farside Investors data. The latest figures bring this week’s total outflows for GBTC to $1.8 billion and mark the fourth consecutive day of net outflows across all 10 Bitcoin ETFs.

Senior Bloomberg ETF analyst Eric Balchunas speculated in a March 21 X post that much of Grayscale’s outflows could soon end, with most of them coming from bankruptcies of crypto firms due to their size and consistency. As of March 21, Grayscale reported that its Bitcoin Trust held a total of $23.2 billion in assets under management. GBTC has shed $13.6 billion since being converted to an ETF on Jan. 11.“Resulting activity volumes and timings of funds out of GBTC and into Genesis match pretty well,” ErgoBTC said. “Simply there just aren’t that many 2k BTC txs per day so likely the GBTC outflows and Genesis inflows are related.”

Pseudonymous crypto market commentator WhalePanda offered a similar sentiment, pointing to a March 19 statement from Genesis that said the firm would be returning assets to creditors “in kind” — meaning that the defunct lender would be selling GBTC shares for Bitcoin. On Feb. 14, Genesis received approval from a United States court to begin liquidating its $1.3 billion worth of GBTC shares in a bid to repay its creditors. Nearly a month prior, bankrupt cryptocurrency exchange FTX sold 22 million GBTC shares, valued at nearly $1 billion, completely liquidating all its holdings.

Do Kwon's Extradition Case Could Go to Montenegro's Supreme Court

Prosecutors in Montenegro suggested that the country's Supreme Court could issue a ruling that would change an earlier decision on Do Kwon's extradition to South Korea. Terraform Labs co-founder Do Kwon will not be extradited to South Korea to face prosecution after Montenegrin prosecutors filed a lawsuit that could take the case to the country's Supreme Court. In a March 21 announcement, prosecutors said they had sought legal protection from the Supreme Court of Montenegro after appealing Kwon's extradition to South Korea. He argued that only the Supreme Court had the authority to make a legal decision in this case.

Montenegrin courts have considered the possibility of authorizing Kwon's extradition to the United States or South Korea, where he could be prosecuted for his role in the demise of Terraform Labs. Following a March 20 decision, it appeared that the Terraform Labs co-founder would be extradited to South Korea. The court used abbreviated procedures instead of ordinary procedures, contrary to the law, and exceeded the limits of its powers, deciding on extradition authorization that falls within the exclusive competence of the justice minister, prosecutors said in a translated statement. Following the Terra collapse in 2022, the South Korean government imposed harsh sentences on those involved in cryptocurrency-related crimes.

In the USA High-profile figures in the crypto space, including Sam Bankman-Fried, Changpeng Zhao and Alex Mashinsky, have been convicted, found guilty or are facing trial for their roles at FTX, Binance and Celsius, respectively. In March 2023, authorities arrested Kwon in Montenegro for using fake travel documents. He was later sentenced to four months in prison and is being held while the country considers extradition requests from the United States and South Korea. The company's former finance chief, Han Chang-joon, was arrested in Montenegro at the same time as Kwon but was extradited to South Korea in February.