Asia-Pacific
India continues to crack down on cryptocurrency exchanges
India’s fight against cryptocurrency exchanges takes a step as FIU issues a notice asking the Information Ministry to block some webs.
Headline
India’s fight against cryptocurrency exchanges takes a step as FIU issues a notice asking the Information Ministry to block some webs.
Context
India has cracked down on overseas crypto exchanges like Binance, saying they are operating illegally in the country and taking action to block locals from accessing the sites, according to Bloomberg. India’s Financial Intelligence Unit (FIU) issues so-called compliance justification notices to several exchanges including Binance, Kraken, KuCoin, and Huobi. According to a statement on December 28, the authorities also asked the Information Ministry to block the Web addresses of the nine entities.
Evidence
Pending intelligence enrichment.
Analysis
The Indian government imposed important rules on the crypto industry this year, joining other countries in tightening regulation of digital assets. A year ago, a tax imposed by authorities on transactions led to a sharp drop in trading volumes, dealing a major blow to local cryptocurrency exchanges. An explanation notice is issued when an individual or entity is suspected of misconduct. This is an official requirement to prove that an individual or entity is complying with Indian law. The FIU said in its statement that some overseas entities provide services to a large proportion of Indian users but are not registered and subject to the anti-money laundering and anti-terrorist financing framework. At the previous G20 summit, Indian Prime Minister Narendra Modi spoke in favor of establishing comprehensive global regulation for cryptocurrencies. Modi’s emphasis on embracing technological advances and taking a unified approach signals a possible shift in India’s stance on cryptocurrencies. Also read: Indian Prime Minister Narendra Modi Advocates Global Cryptocurrency Framework at G20 Summit
Key Points
- India is taking steps to crack down on overseas cryptocurrency exchanges like Binance.
- Binance, the world’s largest cryptocurrency exchange, has come under increasing pressure from global regulators over the past year.
Actions
Pending intelligence enrichment.
