India Requests Ban on Nine Crypto Exchanges
In a recent move against the crypto industry, India’s Financial Intelligence Unit (FIU) has requested the effective ban of nine crypto exchanges operating within the country. This includes popular exchanges like Binance and Kraken. The FIU, responsible for regulating suspicious financial activity, stated that these exchanges are operating illegally by failing to register with the FIU and comply with anti-money laundering and anti-terrorist financing regulations.
The FIU has now requested that the websites of these exchanges be blocked in India until further notice by the Ministry of Electronics and Information Technology. The agency emphasized that virtual digital asset service providers operating in India must register with the FIU as reporting entities and adhere to obligations mandated by the Prevention of Money Laundering Act.
Currently, 31 virtual digital asset service providers have registered with the FIU. However, a significant number of Indian users have chosen to use unregistered exchanges, leading to this regulatory action.
Global Governments Crack Down on Major Crypto Exchanges
This development is part of a larger trend where national governments are taking action against major crypto exchanges. In the United States, Binance was hit with a $4.3 billion fine for non-compliance with anti-money laundering laws, resulting in an agreement to cease operations in the country. As part of this settlement, Binance’s founder agreed to step down as CEO and plead guilty to criminal violations of U.S. anti-money laundering laws.
Currently banned from leaving the United States, Changpeng Zhao, the founder of Binance, awaits sentencing in February.
Hot Take: India Cracks Down on Crypto Exchanges
India’s Financial Intelligence Unit has made a bold move by requesting a ban on nine crypto exchanges operating within the country. This decision is part of a larger global trend where governments are tightening regulations on major crypto exchanges. By cracking down on unregistered exchanges, India aims to enforce anti-money laundering and anti-terrorist financing regulations in the crypto industry. As more countries take action against non-compliant exchanges, it remains to be seen how this will impact the future of cryptocurrencies in the global market.
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