- Indian government ordered major crypto exchanges like Binance and Kraken to cease operations for failing to register with financial regulators and comply with anti-money laundering laws.
- 31 virtual asset service providers have registered with India’s Financial Intelligence Unit as required, but many Indian users still used unregistered exchanges.
- This follows recent crackdowns by governments globally, like the US fining Binance $1.2 billion and forcing its CEO to step down for non-compliance.
The Indian government has ordered several major cryptocurrency exchanges to cease operations in the country. This represents the latest crackdown on the crypto industry by a national government.
Indian Regulators Say Exchanges Are Operating Illegally
The agency, which regulates suspicious financial activity, said these exchanges are operating illegally in India by failing to both register with the FIU and comply with national anti-money laundering and anti-terrorist financing regulations.
The FIU has requested that the websites of these exchanges – Binance, Kucoin, Huobi, Kraken, <a href="https://blocknews.com/crypto-exchange-gate-io-completes-proof-of-reserves-audits-amidst-suspicions/" title="<strong>Crypto Exchange Gate.io Completes Proof of Reserves Audits Amidst SuspicionsGateio, Bittrex, Bitsamp, MEXC Global, and Bitfinex – be blocked in India by the country’s Ministry of Electronics and Information Technology until further notice.
Exchanges Required to Register Under Indian Law
“Virtual Digital Asset Service Providers (VDA SPs) operating in India are required to be registered with FIU-IND as Reporting Entity and comply with the set of obligations as mandated under Prevention of Money Laundering Act (PMLA), 2002,” the FIU said.
So far, 31 such virtual digital asset service providers have registered with the FIU, the agency said. However, many Indian users opted to use exchanges that were unregistered, prompting the latest regulatory action.
India Follows Recent Government Crackdowns
The development marks the latest action against major crypto exchanges by national governments.
Last month, the US government imposed a $1.2 billion fine against Binance for failing to comply with anti-money laundering laws and got the exchange to agree to cease operations in the country.
Binance’s founder Changpeng Zhao agreed as part of the historic settlement to step down as the company’s CEO and plead guilty to criminal violations of US anti-money laundering laws.
India’s crackdown shows governments globally continue to take an aggressive stance toward crypto exchanges operating without proper licenses and controls. The coming months will determine how exchanges adapt and if users find ways around the restrictions.