OKX, one of the world's largest cryptocurrency exchanges, has announced the closure of its operations in India due to issues with local authorities. The decision, which takes effect from April 30, 2024, comes at a time when the Indian government is taking an increasingly restrictive stance towards cryptocurrencies.
Strict rules in India
We have been talking about it for some time now, in India it is no longer so easy to deal with cryptocurrencies, for various reasons. Starting from the high taxation (around 30% on earnings), the ban on the use of cryptocurrencies as a payment method and due to a lack of regulatory clarity, still in development.
Meanwhile, in Europe, the delisting of USDT arrives, the most widespread stablecoin used above all by traders. The decision was made in response to new European regulations on cryptocurrency markets (MiCA).
Briefly, USDT does not yet comply with all the MiCA requirements to be considered an e-money (digital alternative to physical cash). Furthermore, MiCA imposes an issuance cap of 200 million euros for non-e-money stablecoins, while the capitalization of USDT exceeds this limit.
OKX's decisions highlight the challenges that cryptocurrencies are and will face in India, as in Europe and probably in the future also in the USA.
As for Tether, there is no official statement on the intention to comply with MiCA but there are signs that indicate a commitment to compliance.
From what we learn following some research, Tether is collaborating with the authorities and has appointed a new legal advisor specialized in financial regulation. Finally, it appears that Tether plans to release a euro-pegged stablecoin that will be MiCA compliant.
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