✍️ 29 December, 2023 – 9:22 👤 Editor: Jakub Motyka
- India steps up cryptocurrency regulation, issuing non-compliance notices to 9 offshore virtual digital asset service providers.
- The measure will affect Binance, Kucoin, Huobi and 6 other cryptocurrency exchanges.
- The latest news about cryptos on our Telegram channel.
India has taken a significant step in regulation of cryptocurrencies, marking a shift in its approach towards virtual digital asset service providers, known as exchanges.
The Financial Intelligence Unit of India (FIU IND) has issued noncompliance notices to 9 offshore virtual digital asset service providers, citing their illegal operation in the countrywithout complying with the provisions of the Prevention of Money Laundering Act (PML Act).
India Will Ban The Services Of Binance, Kucoin, Huobi And 6 Other Cryptocurrency Exchanges
Among the exchanges affected by this measure are:
This movement, which directly targets globally known cryptocurrency exchanges such as Binance, Kucoin or Huobi, is a clear sign of the growing concern for financial security and the fight against money laundering and terrorist financing in the field of cryptocurrencies.
These crypto exchanges, although popular worldwide, are not authorized to operate in India. The decision to block their websites highlights the Indian government’s strong stance on the operation of cryptocurrency exchanges in its jurisdiction, underscoring the importance of legal and regulatory compliance in this space.
Cryptocurrencies can operate legally in India, but under strict restrictions imposed by local anti-money laundering laws. This includes the obligation for cryptocurrency platforms to deduct taxes at source on each transaction and the payment of a 30% tax on crypto profits without the possibility of offsetting losses in other asset classes.
In addition, regulations require VDA SPs to make reports, maintain records and comply with other obligations under the PML Act , including registration with the FIU IND. Even though there are 31 registered cryptocurrency exchanges in India, many offshore exchanges operate without registration, catering to a substantial portion of Indian users.
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