The Indian government is targeting nine crypto exchanges with compliance letters and possible URL blocks

Bitfinex, Huobi, Binance, Kucoin, Gate.io, Bittrex, Bitstamp, MEXC Global, and several more significant participants are included in the entities.

According to an announcement made on December 28, the Financial Intelligence Unit (FIU) of India has taken strong action against nine offshore Virtual Assets Service Providers (VASPs) for failing to comply with AML-CFT legislation in India.

Significantly stepping up enforcement of financial rules in the digital asset market, these entities—including prominent players like Binance, KuCoin, and Huobi—have been handed Show Cause Notices under the Prevention of Money Laundering Act (PMLA).

This follows March 2023, when VASPs were included in the AML-CFT framework, demonstrating India’s determination to oversee the dynamic virtual asset market.

A statement outlining the entities’ activities with regard to Indian users is required in light of the FIU’s action, which targets firms operating without registration and compliance with the PMLA.

Famous international companies like Binance (which has several international addresses), KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex are among the corporations that have received letters of notification.

The activities of these companies, which include Indian customers, are now under investigation. Their jurisdictions include the Seychelles, Singapore, the British Virgin Islands, the US, Luxembourg, and the Cayman Islands.

The Director of FIU IND has asked the Ministry of Electronics and Information Technology to ban these businesses’ URLs, further tightening the regulatory noose, on the grounds that they are operating illegally and not in compliance with Indian regulations.

A larger effort to protect the Indian financial system from hazards associated with unregulated virtual asset transactions is underway, and this measure is one component of it.

These changes demonstrate the Indian government’s determination to make sure that all VASPs that serve Indian users follow the local laws, no matter where they are located.

At this time, the AML and CFT frameworks are fully operational, and 31 VASPs have registered with the FIU. The swift and decisive action against the nine offshore firms demonstrates India’s will to strictly enforce its financial rules, particularly in light of the increasing importance of virtual assets.

Strict reporting, record-keeping, and PMLA adherence are all part of the compliance obligations, which go beyond just registration.

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