Saturday, February 24, 2024

India to block crypto exchanges Binance, Kraken and Kucoin websites.

Nine international cryptocurrency exchanges, including Binance, Kraken, Kucoin, and Mexc, are allegedly operating “illegally” in India without abiding by the local anti-money laundering act. The Financial Intelligence Unit, an Indian government agency that monitors financial transactions, said on Thursday that it requested that the IT Ministry block their websites.

All nine of the firms have received show cause notices, according to FIU. According to the government body, international cryptocurrency exchanges cannot circumvent India’s anti-money laundering regulations just because they are not physically present in the nation.

“Yet, a number of offshore companies that serve a sizable portion of Indian users were failing to register and fall under the purview of the Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) frameworks,” the statement stated.

In March of this year, India included cryptocurrencies in its anti-money laundering and counterterrorism funding framework. It stated that 31 cryptocurrency companies have registered with the FIU.

In an apparent attempt to avoid paying taxes, a large number of Indian dealers have recently shifted to international cryptocurrency platforms. India started taxing virtual currencies last year. Gains are subject to a 30% tax, and each cryptocurrency transaction is subject to a 1% deduction.

The same hasn’t been true of many international platforms, but India-based cryptocurrency exchanges like a16z-backed CoinSwitch Kuber, B Capital-backed CoinDCX, and erstwhile Binance partner WazirX still demand stringent know-your-customer verifications prior to onboarding new users. (Trading volume on WazirX has decreased by an astounding 97% in just two years, in part due to the migration of several traders to international apps.)

The laws of India have been found to be broken by Huobi, Gate.io, Bittrex, Bitstamp, and Bitfinex, among other exchanges. (Coinbase ceased accepting new members in India a few months ago.)

The majority of cryptocurrency exchanges in India are FIU-registered organizations that abide by the Prevention of Money Laundering Act. The recent order by FIU IND to offshore Virtual Digital Assets Service Providers (VDA SPs) would help reduce risks and build a secure VDA ecosystem, according to a statement from CoinDCX co-founder and CEO Sumit Gupta.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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