In a significant move, India’s Finance Ministry has issued compliance show-cause notices to nine major offshore cryptocurrency exchanges, including industry giants like Binance, Huobi, and Kucoin. The government accuses these platforms of operating illegally within the country’s borders without adhering to local money laundering laws.
The notices demand an explanation for their non-compliance with the established regulations. Simultaneously, the ministry has urged the Information Technology Ministry to block the URLs of these exchanges, citing their illegal operations within the country.
This development highlights India’s commitment to bringing offshore crypto exchanges under regulatory oversight, signaling a significant shift in the country’s approach toward monitoring and controlling digital asset transactions.
India’s Finance Ministry emphasizes the necessity for virtual digital asset (VDA) service providers to register with the Financial Intelligence Unit-India (FIU-IND). This includes activities such as the exchange between virtual digital assets and fiat currencies, with obligations extending beyond physical presence in India.
The implementation of a 1% tax on crypto transactions in India on local exchanges has led to a notable migration of users to foreign platforms. Between February and July 2022, three to five million Indian users shifted to offshore exchanges, causing potential revenue loss for the government.
This move by the Indian government has far-reaching implications for the operations of these exchanges in the Indian market, although the issued notices do not specify a timeframe or consequences.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇮🇳 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Bitstamp, Bittrex, Kucoin, Huobi, MEXC Global, Kraken, Binance, Bitfinex, Gate.io |
| Currencies | bittrex, KuCoin, bitstamp, Huobi, bitfinex, mexc global, BUSD, Gate, kraken |
| Securities | None |
