Indian Government Blocks Access to Global Crypto Platforms
India has taken decisive action against overseas crypto exchanges like Binance, Kraken, KuCoin, and Huobi, moving to block local access to their websites due to suspected illegal operation and non-compliance with Indian laws. The Financial Intelligence Unit issued compliance show-cause notices and requested the information ministry to block the URLs of the nine entities. This marks a significant development in India’s regulatory stance towards cryptocurrencies, which has been a topic of increasing scrutiny and concern.
The Indian government imposed money-laundering provisions on the crypto sector and introduced a tax on transactions in 2022. This led to a significant drop in trading volumes on local crypto exchanges, with CoinDCX CEO estimating that 95% of trading volume has moved to offshore venues due to the new tax introduced in India. The move to block access to overseas exchanges further underscores the government’s commitment to regulating the crypto space and ensuring compliance with local laws.
The actions taken by India’s financial regulators reflect a broader trend of increased scrutiny of cryptocurrency exchanges worldwide. Binance, the largest crypto exchange, has come under increased pressure from regulators globally and agreed to pay $4.3 billion as part of a plea deal for anti-money laundering and US sanction violations. This highlights the growing focus on enforcing regulations and combating illicit activities within the crypto industry, with authorities working to hold exchanges accountable for non-compliance with laws and regulations.
India’s move to block access to overseas crypto exchanges is a clear signal of the government’s commitment to enforcing regulations and ensuring compliance within the cryptocurrency sector. The implementation of money-laundering provisions and the introduction of a tax on transactions have significantly impacted local trading volumes, prompting a shift of trading activities to offshore platforms. As regulatory scrutiny of the crypto industry intensifies globally, the actions taken by Indian authorities serve as a notable example of efforts to address compliance and illicit activities within the crypto space.
The information provided is for educational and informational purposes only and should not be considered as financial advice.