India Looks to Block Access to Major Exchanges Including Binance and Kraken
India intensifies regulatory measures on cryptocurrency, targeting nine major overseas exchanges, including Binance and Kraken.
India’s Financial Intelligence Unit (FIU) has announced the effective ban of nine crypto exchanges, including Binance and Kraken. These exchanges are deemed to be operating illegally for not adhering to national anti-money laundering and anti-terrorism financing regulations.
The targeted exchanges—Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex—are requested to be blocked in India by the Ministry of Electronics and Information Technology. This measure is part of India’s broader strategy to enhance oversight of digital assets.
The FIU has issued compliance show-cause notices to these platforms, demanding adherence to Indian laws. This action aims to align India with global efforts to combat financial crimes and protect investor interests.
The introduction of money-laundering provisions earlier this year has significantly impacted the local crypto market. A substantial number of Indian users opted for these unregistered exchanges, leading to a decline in trading volumes on local Indian crypto exchanges.
The crackdown on Binance, the world’s largest crypto exchange, is part of a global trend of increased regulatory scrutiny. Binance and other exchanges are under pressure to comply with international AML standards. The FIU’s recent action against Binance and others is a continuation of India’s efforts to regulate the crypto sector.
India’s aggressive stance on regulating overseas crypto exchanges signifies a major shift in the global cryptocurrency landscape. With compliance and transparency at the forefront, this move might redefine how crypto exchanges operate in India and set a precedent for other countries grappling with similar regulatory challenges.
