India has ramped up its regulatory measures against
offshore cryptocurrency exchanges, directing Apple to eliminate the apps of
platforms such as Binance from its App Store within the country.
According to a report by Bloomberg, this recent escalation follows a notice from the
Financial Intelligence Unit (FIU) targeting nine platforms suspected of
regulatory misconduct in late December, signaling a tightening grip on the
crypto landscape.
India’s Ministry of Electronics and Information
Technology has prompted the removal of apps from platforms
like Bitfinex, HTX, and Kucoin, among others, from the Indian App Store. While
these directions were not made public, sources familiar with the matter
disclosed this intervention.
India’s stance against offshore crypto platforms
heightened following the December 28 notification to nine exchanges suspected
of operating unlawfully. Fearful of potential fund access loss, Indian crypto
traders had already begun shifting deposits to locally compliant exchanges
adhering to the nation’s regulations.
India’s FIU issued compliance show cause notices to
the offshore platforms on December 28, urging the information ministry to block
their URLs. Additionally, Asia’s second-most populous country
implemented anti-money laundering provisions within the crypto sector, adding a
1% levy called Tax Deducted at Source.
The step reportedly led to a migration of trading
volumes to offshore venues. Local exchanges were affected as traders sought
platforms that did not impose this tax, significantly reducing their trading
revenues.
Last year, India blocked several offshore exchanges operating within its borders without proper
registration. This involved issuing show cause notices to nine prominent global
crypto platforms, including Binance, Kraken, and others, Finance Magnates
reported.
The notice from the FIU named Binance, Kucoin,
Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex entities
operating illegally within India’s crypto landscape.
Crypto Regulatory Obligations in India
While India permits cryptocurrency exchanges to
function within its jurisdiction, stringent anti-money laundering laws impose
significant restrictions.
This directive emphasizes that the obligation to
comply with India’s anti-money laundering laws applies to the activity-based
operations of virtual digital assets service providers. These regulations mandate reporting, record-keeping,
and registration, highlighting the significance of abiding by
local laws, even for offshore exchanges.
The stringent regulations in India’s crypto sector have caused some crypto exchanges to reduce their workforce. Following similar moves in the crypto market, India’s crypto exchange CoinDCX opted to lay off 12% of its employees. Alongside challenging macroeconomic conditions, CoinDCX attributed a significant portion of its struggles to the TDS regulations imposed by the Indian government.
India has ramped up its regulatory measures against
offshore cryptocurrency exchanges, directing Apple to eliminate the apps of
platforms such as Binance from its App Store within the country.
According to a report by Bloomberg, this recent escalation follows a notice from the
Financial Intelligence Unit (FIU) targeting nine platforms suspected of
regulatory misconduct in late December, signaling a tightening grip on the
crypto landscape.
India’s Ministry of Electronics and Information
Technology has prompted the removal of apps from platforms
like Bitfinex, HTX, and Kucoin, among others, from the Indian App Store. While
these directions were not made public, sources familiar with the matter
disclosed this intervention.
India’s stance against offshore crypto platforms
heightened following the December 28 notification to nine exchanges suspected
of operating unlawfully. Fearful of potential fund access loss, Indian crypto
traders had already begun shifting deposits to locally compliant exchanges
adhering to the nation’s regulations.
India’s FIU issued compliance show cause notices to
the offshore platforms on December 28, urging the information ministry to block
their URLs. Additionally, Asia’s second-most populous country
implemented anti-money laundering provisions within the crypto sector, adding a
1% levy called Tax Deducted at Source.
The step reportedly led to a migration of trading
volumes to offshore venues. Local exchanges were affected as traders sought
platforms that did not impose this tax, significantly reducing their trading
revenues.
Last year, India blocked several offshore exchanges operating within its borders without proper
registration. This involved issuing show cause notices to nine prominent global
crypto platforms, including Binance, Kraken, and others, Finance Magnates
reported.
The notice from the FIU named Binance, Kucoin,
Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex entities
operating illegally within India’s crypto landscape.
Crypto Regulatory Obligations in India
While India permits cryptocurrency exchanges to
function within its jurisdiction, stringent anti-money laundering laws impose
significant restrictions.
This directive emphasizes that the obligation to
comply with India’s anti-money laundering laws applies to the activity-based
operations of virtual digital assets service providers. These regulations mandate reporting, record-keeping,
and registration, highlighting the significance of abiding by
local laws, even for offshore exchanges.
The stringent regulations in India’s crypto sector have caused some crypto exchanges to reduce their workforce. Following similar moves in the crypto market, India’s crypto exchange CoinDCX opted to lay off 12% of its employees. Alongside challenging macroeconomic conditions, CoinDCX attributed a significant portion of its struggles to the TDS regulations imposed by the Indian government.
