The Indian government is taking decisive action against major offshore cryptocurrency exchanges operating in the country without complying with local regulations. This week, India’s Financial Intelligence Unit issued compliance notices to 9 platforms including Binance, KuCoin, and Kraken.
Authorities warned that continued non-compliance could result in URLs being blocked for exchanges like Binance and Huobi. The notice mandates that offshore exchanges catering to Indian users must register with local anti-money laundering agencies.
India’s Stance Against Rogue Exchanges Hardens
This latest crackdown escalates India’s efforts to rein in offshore exchanges flouting laws. In March, the country mandated that all crypto businesses register with India’s Financial Intelligence Unit. This requires following know-your-customer and anti-money laundering protocols.
However, multiple exchanges continued operating in India without local registration. Authorities described these unauthorized entities as “operating illegally without complying with the provisions” of Indian law.
The stern compliance notices represent the government’s lack of patience with non-cooperative offshore platforms. India is ready to block access at home if unregistered exchanges don’t change course.
With crypto adoption surging in India, authorities want tighter regulation over platforms handling significant local transaction volumes and users. It remains to be seen if defiant exchanges will fall in line or ultimately get blocked by Indian internet service providers.
