In a significant move by India, several exchanges, including Bitget, Huobi, Gate.io, OKEx, Kraken, and MXC, have been banned, aligning with actions taken against offshore exchanges. The recent crackdown led to the downfall of 10 crypto exchanges in India,issue. As the Apple App Store removed them due to non-compliance issues.
The Ministry of Finance’s directive resulted from concerns about non-compliance with financial regulations and anti-money laundering rules. Major exchanges like Binance and KuCoin were among those affected by the stringent measures, as reported by GizmoChina. This action is seen as a crucial step in regulating India’s cryptocurrency landscape.
According to reports, the Financial Intelligence Unit (FIU) of the Finance Ministry accused these exchanges of operating unlawfully in the country and failing to adhere to anti-money laundering regulations.
To address issues related to anti-money laundering and tax compliance. Cryptocurrency exchanges in India are required to register as reporting entities, as per the FIU’s notification on December 28, 2023. The Ministry of Electronics and Information Technology has been requested to implement a block on these exchanges.
The FIU’s order emphasizes the necessity for exchanges operating in India to register as reporting entities and comply with income tax filing requirements. This move signals a pivotal moment in the effort to regulate and bring transparency to the cryptocurrency ecosystem in India.
