Binance Kucoin and 7 other offshore crypto exchanges are on the verge of getting banned in India

Indian Government Wants To Kill Crypto

By Coins Reporter | Coinsreporter | 29 Dec 2023


In another tyrannical move towards crypto, India's finance ministry by the recommendation of FIU has issued show cause notices to 9 major Cryptocurrency exchanges. This move may be a killing blow for the crypto market in the world's largest country as it may lead to banning URls for these exchanges if found uncomplying  to the Anti Money Laundering or Anti Terrorist Funding rules and regulations.

A Shadow Ban?

In a release, the Finance Mistry of India has issued a 'compliance show cause notice to 9 VDASPs (Virtual Digital Asset Services Providers)

The release of recommendation to ban URLs for 9 crypto exchanges in India

With Binance being much more popular among Indian traders, other names include the list are Kucoin, Bitfinex, Huobi, MexcGlbal, Bittrex, Bitstamp, Gate.io  and Kraken. 

What is FIU?

The FIU is the watchdog for non-compliance of AML and ATF policies inside the Indian borders and reports directly to Indian government for any suspicious activity related to offshore funding. 

What Is The Basis Of This Notice?

It is also to be noted that all VDASPs fall under the AML-CFT (Anti Money Laundering/Counter Financing of Terrorism) framework. They wer brought under the regime of Prevention of Money Laundering Act 2002 by an amendment in March 2023. This act does not limit to the bodies that are physically present in the country so as to conduct business in India Virtual service providers are also required to follow it.

FIU takes this step of recommendation to ban URLs for 9 offshore crypto exchanges in India with PML Act 2023

Impacts of This Ban on Indian Crypto Market

  • Secondly, as Binance is the platform which is now very popular for P2P trades in India, the traders might be forced to acknowledge on-the-shore exchanges and will have to pay taxes for their gains.
  • Furthermore India’s move to ban major crypto exchange URLs might sound dramatic, but it’s essential to note that India isn’t a dominant player in the global crypto market. The impact might be less significant than perceived, as the crypto landscape is vast and resilient.
  • Last but not the least, this move may prove as a killing blow for crypto in India because there's no crypto exchange in India that's even a 1% of Binance and Kucoin in terms of faith and services.

Thus it's safe to say that Indian traders, only who believe that crypto regulations may be easier in future, would surely hold to their assets. But those who are small traders will leave the market and this may kill this developing industry in the country.

Don't FUD. No Exchange Banned for Now

But remember this isn't a ban and it's not over for overseas crypto exchanges. It's just a 'Show Cause Notice' as one X user reacts to the FUD.

In A Nutshell 

All in all, these rules like AML or CFT should definitely be pursued by any government but they shouldn't be performed to kill an innovation. However Indian government is almost on the verge of killing the hopes for millions of young unemployed Indians.

¶¶¶•••••••••••••¶¶¶

🎁🎄☃️🌌

As Always Thanks for Reading and Tipping 

Adios ... Ciao.... Bye ... Take care ...

Read more interesting Articles👇👇

How We Both Can Get $25 Each: A Guide

Read More: A Story of Hope:How Bitcoin Changed Everything 

Read More: "If Winter Comes, Can Spring Be Far Behind?"  

 

follow me on Twitter @cryptocoins4u

follow me on Facebook @hodlxpress

Tap Here to Earn Free Crypto

Like Share and Subscribe

 

 

 

 

How do you rate this article?

21


Coins Reporter
Coins Reporter Verified Member

Once a Bitcoiner and forever will be. Love to share my views even if they are unbelievable.


Coinsreporter
Coinsreporter

Let's talk about how cryptocurrency is revolutionising the financial sector. How it's changing your life and my life. The general idea of this blog is to write content that is relevant, up-to-date, useful and interesting.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.