Will India Ban These Nine Offshore Crypto Exchanges?

10 months ago 6

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The financial regulator in India has released a document detailing actions against nine prominent cryptocurrency exchanges, indicating the possibility of additional measures against them.

“Financial Intelligence Unit India (FIU IND) has issued compliance Show Cause Notices to following nine offshore Virtual Digital Assets Service Providers (VDA SPs) under Section 13 of the Prevention of Money Laundering Act, 2002 (PMLA).”

India’s Regulator Cites Numerous Crypto Exchanges

According to a recent statement, FIU IND asserted that the nine cryptocurrency exchanges, including Binance, KuCoin, and Huobi, operate illegally in India.

“Director FIU IND has written to Secretary, Ministry of Electronics and Information Technology to block the URLs of said entities that are operating illegally without complying with the provisions of the PML Act in India.”

Meanwhile, it highlights that the crypto exchanges are inadequately complying with registration requirements in India.

However, the document states that these exchanges are required to be registered with FIU IND as Reporting Entity. As well as “comply with the set of obligations as mandated under Prevention of Money Laundering Act (PMLA) 2002.”

India Continues Actively Working on Cryptocurrency Regulation

Meanwhile, in April, the Indian Finance Minister Nirmala Sitharaman proposed a common framework for G20 countries to regulate the crypto sector.

However, with India holding the G20 presidency, cryptocurrencies have been central to the ongoing discussions.

BeInCrypto recently reported that a judge for India’s Supreme Court questioned the government’s ability to handle complex cryptocurrency cases. Furthermore, citing its current law enforcement setup as the main issue.