Contact Information

160 Robinson Rd, #14-04
Sit Rd, SBF Center, Singapore 068914

India is escalating its oversight of the crypto sphere by curbing the operations of offshore exchanges like Binance, which it claims are illegally conducting business within its borders.

  • Crypto Hits: The Financial Intelligence Unit (FIU) has issued compliance show-cause notices to several platforms, including Binance, Kraken, KuCoin, and Huobi, demanding they justify their legal compliance.
  • Blocked from India: The FIU has also requested the Information Ministry to block the URLs of these entities. This move comes as the government expresses concerns that offshore entities serving a significant portion of Indian users are not aligning with the Anti Money Laundering (AML) and Counter Financing of Terrorism (CFT) regulations.
  • Letter of the Law: In a bid to tighten control over digital assets, India introduced money-laundering provisions specific to the crypto sector earlier this year. This aligns with measures taken by other countries striving towards increased crypto regulation.
  • Movements and Changes: The imposition of a transaction tax on local crypto exchanges in 2022 saw trading volumes take a hit. Local exchanges argue that this tax has prompted Indian crypto traders to shift to offshore platforms that do not levy the charge, subsequently damaging their revenue streams.

CoinDCX CEO Sumit Gupta estimated in October that about 95% of trading volumes have relocated to offshore locations. Binance, the world’s largest crypto exchange, is under the microscope as India’s anti-money laundering agency investigates its potential role in issues related to betting apps.

client banner image


Leave a Reply

Your email address will not be published. Required fields are marked *