India Targets Global Crypto Exchanges, Seeks URL Blocks

India’s Financial Intelligence Unit (FIU) has taken steps to block the URLs of several major global cryptocurrency exchanges, including Binance, KuCoin, Huobi, and others. This action comes in response to allegations of illegal operations and violations of Anti-Money Laundering (AML) regulations by these foreign virtual digital asset service providers.

FIU Cracks Down on Non-Compliance

FIU’s Compliance Show Cause Notices Alert. Source: PIB Government of India

India’s Financial Intelligence Unit issued compliance notices to nine foreign virtual digital asset service providers, accusing them of operating illegally and breaching AML regulations. Among the targeted exchanges are prominent names like Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. The FIU has requested the Ministry of Electronics and Information Technology to block the URLs of these companies, a move aimed at preventing access to their websites within the country.

India’s Evolving Crypto Regulatory Landscape

India, ranking as the top country in Chainalysis’ global crypto adoption index for 2022, has become the second-largest market globally by raw estimated transaction volume. The growing adoption has prompted regulatory action, and the country is currently working on a comprehensive crypto regulatory framework.

Conclusion

As India asserts its stance on regulating the burgeoning cryptocurrency market, the recent move to block major global exchange URLs reflects a commitment to enforcing compliance and safeguarding against illicit financial activities. The evolving regulatory framework is poised to bring clarity to the crypto landscape in India, aligning with international recommendations and establishing a structured approach to the growing digital asset sector.