The Indian government has blocked the URLs of nine offshore cryptocurrency exchanges for non-compliance with anti-money laundering laws. Users are encouraged to shift their assets to registered exchanges to ensure security and compliance. Notable exchanges such as KuCoin and Binance have regained approval after paying penalties. The domestic market continues to grow, offering several secure platforms for trading.
As cryptocurrency continues to boom globally, numerous exchanges have surfaced to enable users to trade digital currencies like Bitcoin and Ethereum. These exchanges function much like stock markets, providing a vibrant digital marketplace where users can seamlessly buy, sell, and store their assets through both desktop and mobile platforms.
In a significant move, the Indian government has recently blocked the URLs of nine offshore cryptocurrency exchanges deemed non-compliant with the nation’s anti-money laundering laws. The Financial Intelligence Unit (FIU) identified these exchanges as operating illegally in India, leading to their swift removal from access within the country.
On December 28, 2023, the FIU issued a notice to exchanges such as Binance, Kraken, and Huobi, instructing the Ministry of Electronics and Information Technology to block their URLs. The notice emphasized non-compliance with the Prevention of Money Laundering Act (PMLA), noting that these exchanges must register as Reporting Entities with FIU to operate legally within India.
This compliance action reflects FIU India’s commitment to regulating financial transactions and curtailing suspicious activities linked to cryptocurrencies. Currently, 31 exchanges have registered with FIU to operate in compliance, whereas many offshore exchanges continue to circumvent these regulations, jeopardizing Indian users’ assets and their transactions.
For users trading on unregistered platforms, it is prudent to move assets to an FIU-registered cryptocurrency exchange. Instead of panicking or selling investments, users should safeguard their cryptocurrencies by transferring them to a local exchange or their personal wallets, ensuring greater security and regulatory compliance.
With the ban on major exchanges, the domestic market is poised to gain as users flock to compliant platforms. Following the bans, exchanges like KuCoin and Binance have since registered with FIU after paying penalties to resume operations. KuCoin paid $41,000 while Binance is expected to settle a $2.25 million fine to restart its services in India.
The landscape of cryptocurrency exchanges in India is evolving. Currently, there are several registered platforms where users can trade securely. Among them are:
1. UnoCoin: One of India’s oldest exchanges, offering trading for eighty digital currencies with referral bonuses.
2. CoinDCX: Recognized for its transparency and safety, including automated security checks.
3. ZebPay: Known for interest earnings on crypto deposits, attracting nearly 50 lakh users.
4. Mudrex: Compliant with Indian regulations, offering zero fees on crypto deposits to its two million investors.
5. CoinSwitch: Ideal for beginners, allowing trading in over 100 cryptocurrencies.
6. WazirX: A rapidly growing platform well-suited for beginners, boasting advanced trading features available across multiple devices.
The recent actions by the Indian government regarding cryptocurrency exchanges mark a pivotal change in the trading landscape. With a focus on compliance and consumer safety, the FIU’s ban on certain offshore exchanges compels users to seek shelter in registered platforms. As the industry adapts, there remains a promising future for compliant exchanges that ensure both security and transparency for Indian investors.
Original Source: www.forbes.com
