India Blocks Access To Offshore Crypto Exchanges For Noncompliance
The government of India asked the Ministry of Electronics and Information Technology to block access to offshore crypto exchanges that have failed to comply with the compliance notices sent to them. Binance, Kucoin, Huobi, Kraken, and Bitfinex are among the nine crypto exchanges blocked due to noncompliance. The Ministry of Finance has revealed that 31 crypto service providers have registered with the Financial Intelligence Unit India.
"Compliance Show Cause Notices" Issued
The Ministry of Finance, Government of India, announced on Thursday that the Financial Intelligence Unit India (FIU IND) has issued “Compliance Show Cause Notices” to nine offshore crypto service providers. The government of India included crypto service providers under the provisions of the Prevention of Money Laundering (PML) Act in March, which covers the Anti-Money Laundering/Counter Financing of Terrorism (AML-CFT).
Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex are the nine crypto service exchanges that were issued notices.
The Indian Ministry of Finance stated:
"Director FIU IND has written to the Secretary, Ministry of Electronics and Information Technology, to block the URLs of said entities that are operating illegally without complying with the provisions of the PML Act in India."
The government of India has made it mandatory to comply with the rules set forth by the Prevention of Money Laundering Act of 2002 for all the crypto service providers operating in India to register with the FIU IND as a reporting entity. “The obligation is activity-based and is not contingent on physical presence in India,” the finance ministry said.
31 Crypto Service Providers Are Registered
The Ministry of Finance has revealed that 31 crypto service providers have registered with the FIU IND. Earlier this month, the central government shared information with the Members of Parliament that 28 crypto service providers are registered with the Financial Intelligence Unit, including Coindcx, Unocoin, Giottus, Bitbns, Zebpay, Wazirx, Coinswitch, Mudrex, Buyucoin, Pyor, Valr, and Bytex.
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