India Suspends Access to Foreign Cryptocurrency Exchanges
India has suspended access to several foreign cryptocurrency exchanges, including Binance, KuCoin, and OKX. The country’s Financial Intelligence Unit (FIU) requested clarification from these exchanges, but they failed to comply. As a result, the Indian government has blocked access to these exchanges on both web and Android platforms.
Apple Removes Offshore Exchanges from App Store
Apple set a precedent by removing these offshore exchanges from its App Store after receiving a show-cause notice from the FIU. The FIU raised concerns about potential money laundering activities on these platforms and advised a ban until they adhere to India’s crypto regulations.
Boost in Registrations on Domestic Exchanges
The blocking of foreign crypto platforms has led to an increase in registrations on domestic exchanges. Indian crypto traders started shifting their funds to offshore exchanges due to taxes imposed on crypto profits and transactions. However, with the recent access restrictions, traders have begun migrating back to domestic exchanges like WazirX, CoinDCX, and CoinSwitch Kuber.
Surge in Deposit Inflows for Domestic Exchanges
WazirX reported a 250% surge in deposit inflows within four days of the compliance notice sent to foreign exchanges. Other domestic platforms have also experienced increased activity. This sudden change has left many Indian crypto investors with assets stuck in blocked foreign platforms’ wallets.
$4 Billion in Crypto Assets Remain Offshore
Estimates suggest that approximately $4 billion worth of crypto assets are still held offshore to avoid taxes. Binance is reported to hold 80% of this amount.
Hot Take: Indian Government Cracks Down on Foreign Crypto Exchanges
The Indian government’s decision to suspend access to foreign cryptocurrency exchanges highlights its commitment to regulating the crypto industry within the country. By enforcing compliance with local regulations, the government aims to prevent potential money laundering and ensure the security of investors. While this move has led to a surge in registrations and activity on domestic exchanges, it has also left some investors in a difficult position with funds stuck in blocked foreign platforms. The situation underscores the importance of understanding and adhering to regulatory requirements when participating in the crypto market.
By
By
By
By
