Cryptocurrency exchange OKX is planning to enter the Indian market and hire local employees to explore opportunities related to Web3 applications.
OKX, the sixth-largest cryptocurrency exchange worldwide in terms of volume, aims to expand its wallet services by tapping into India’s developer community. Currently, the exchange has around 200,000 wallet users in India, which represents only 5% of the country’s Web3 users.
While OKX does not have a global headquarters, it operates through regional hubs in Hong Kong, Singapore, Dubai, and the Bahamas. The company intends to take a community-based approach to entering the Indian market, relying on local employees to lead its efforts rather than opening a physical office in the country.
” Once India comes up with a regulatory framework for crypto, then we would like to be the front runners. We are not going to come in and cowboy this thing. We’re going to learn about the community. We’re going to work with local folks. Figure out where we can add value,” said OKX chief marketing officer Haider Rafique.
Trading in cryptocurrencies is not explicitly illegal, and individuals and businesses were actively participating in the crypto market. Regarding taxation, India did impose a tax on cryptocurrency transactions. The tax rate on cryptocurrency gains was subject to the individual’s income tax bracket, which could be as high as 30%. The lack of clear regulations has led to concerns about criminal activities involving cryptocurrencies, prompting calls for regulatory clarity in the country.
Crypto transactions were categorized as capital gains, and taxpayers are required to report their cryptocurrency holdings and transactions for tax purposes. However, cryptocurrencies don’t have the status of legal tender, and they can’t be used for traditional banking activities.
OKX was among the first tranche of crypto exchange that provided their customers and other stakeholders with a snapshot of its reserve holdings. This came at a time when major crypto plyers come under greater scrutiny after the stunning implosion of the erstwhile second-largest global crypto exchange FTX.
Earlier last month, OKX said it garnered over 10,000 new user registrations within a month of launching its operations in Hong Kong. This remarkable influx is particularly noteworthy as OKX becomes the first exchange in Hong Kong to reach this milestone following the implementation of the city’s new virtual asset service providers (VASPs) regime on June 1, 2023.