OKX to Exit India Amid Regulatory Issues, Coinbase Plans New Futures Products, SEC Eyes Ether
Summary:
After receiving a compliance order from the Indian government, crypto exchange OKX has announced closure of its services in India, citing local regulatory challenges. Meanwhile, Coinbase is planning to launch futures trading products for Dogecoin, Litecoin, and Bitcoin Cash, considering Dogecoin's "transcended" meme origins. In other news, the U.S Securities and Exchange Commission (SEC) is exploring the classification of Ether (ETH) as a security, issuing several subpoenas to related companies.
The Indian branch of the cryptocurrency exchange, OKX, is giving notice to its users that it will soon shut down following orders from the government requesting compliance from multiple exchanges. Meanwhile, Coinbase is getting ready to roll out new futures trading options covering Dogecoin, Litecoin, and Bitcoin Cash. Concurrently, the U.S Securities and Exchange Commission (SEC) is attempting to classify Ether (ETH) as a security.
OKX, the crypto trading platform, is shutting down its operations in India. This comes roughly three months after the Financial Intelligence Unit (FIU) under the Indian Ministry of Finance dispatched compliance notices to nine foreign crypto exchanges. OKX informed its Indian users on March 21 to close and withdraw funds from their accounts before the end of April. The decision came as a result of significant regulatory challenges in India. The country presents a tough operating environment for foreign crypto exchanges despite being a potential growth area, mainly due to stringent government actions and uncertainty around regulatory guidelines.
On a different front, Coinbase, the cryptocurrency exchange, perceives Dogecoin's (DOGE) prolonged appeal as a sign of it outgrowing its meme-focused beginnings to become an industry staple. Consequently, the company plans to offer futures trading options for the crypto. In letters to the U.S Commodity Futures Trading Commission (CFTC), Coinbase Derivatives unveiled plans on March 7 to introduce cash-settled futures contracts for Dogecoin, Litecoin (LTC), and Bitcoin Cash (BCH) from April 1. Coinbase validates its move to list Dogecoin, claiming the coin has outlived its joke status and emerged as a crucial industry player. At the time of this report, Dogecoin's price has increased by 17% and trades at $0.15.
Meanwhile, reports from Fortune on March 20 reveal that the SEC has issued various subpoenas to firms relating to Ether’s classification as a security. The report hinted at possible grounds for the SEC to categorize ETH as a security due to its ongoing scrutiny of the Ethereum Foundation. Against this backdrop, the foundation appears to acknowledge a possible investigation by a state authority.
The SEC initiated investigations into Ether’s possible security status after the blockchain network's transition from proof-of-work to proof-of-stake in 2022. The SEC’s move to regulate Ether may clash with the U.S Commodity Futures Trading Commission. Authorities are working to bring clearer regulatory procedures for digital assets. However, a legislative framework still remains elusive. As always, any investment and trading decision carries risk and readers are advised to conduct independent research before making any investment decisions.
Published At
3/21/2024 4:00:00 PM
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