India to Block Binance and Other Major Crypto Exchanges

Indian government has issued stern warnings to nine major crypto exchanges, including Binance and Kucoin

The Indian government has issued stern warnings to nine major crypto exchanges, including prominent names like Binance, Kucoin, Huobi, and Kraken. These exchanges now face potential access restrictions in India for non-compliance with the country's Anti Money Laundering (AML) and Counter Financing of Terrorism (CFT) rules.

A Sweeping Compliance Drive

The Financial Intelligence Unit of India (FIU IND) has taken decisive action against these offshore exchanges. Notices have been issued, demanding explanations for their failure to register under India's stringent AML and CFT frameworks. This regulatory move aligns with the Prevention of Money Laundering Act (PMLA) of 2002, which India expanded in March 2023 to include Virtual Digital Assets Service Providers (VDA SPs).

These regulations mandate all cryptocurrency exchanges operating in India, irrespective of their physical location, to register as Reporting Entities with the FIU IND. This registration process involves meeting a series of obligations, including adhering to stringent reporting and record-keeping practices. The objective is to crack down on potential financial crimes within the rapidly growing cryptocurrency space in India.

Push for Blocking Non-Compliant Platforms

As of now, 31 VDA SPs have successfully registered with the FIU IND. However, the reluctance of these nine major exchanges to comply has prompted India's latest regulatory crackdown. The Director of FIU IND has escalated the matter by recommending the blocking of their URLs, effectively cutting off access to these platforms for users in India.

The decisive actions by the Indian government have significant implications for cryptocurrency users in the country. If these major exchanges are blocked, Indian investors may encounter challenges in accessing a diverse range of digital assets, potentially impacting their trading strategies and portfolio diversity.

Moreover, this regulatory pressure could lead to a surge in the utilization of peer-to-peer (P2P) trading platforms as traders actively seek alternatives to the mainstream exchanges. This shift towards P2P trading could foster a more localized and fragmented digital asset market within India.

The evolving regulatory landscape in India showcases the government's commitment to ensuring compliance within the cryptocurrency sector. As users and investors navigate these changes, the industry is likely to witness shifts in trading patterns and a reevaluation of the role of major exchanges in the Indian crypto ecosystem.

The post "India to Block Top 9 Exchanges URLs Including Binance and Kucoin" originally appeared on Coinpedia Fintech News.