India Cracks Down on Major Crypto Players
India’s Financial Intelligence Unit has taken action against nine offshore virtual digital assets service providers, including industry giants like Binance and Huobi.
This move marks a significant development in the local crypto landscape, signaling a regulatory push. It aligns with India’s efforts to enforce its AML-CFT framework, expanded to cover VDA SPs in March 2023.
These nine entities, boasting substantial user bases in India, have operated without complying with the PML Act’s registration mandates.
The FIU’s notifications require these exchanges to address their non-compliance or risk potential website blocks within India, potentially severing ties with a considerable user segment.
India’s stance on cryptocurrency has been marked by fluctuations in policies and regulatory uncertainties.
Initially, there were discussions of an outright ban, notably seen when the RBI barred banks from engaging with crypto businesses in 2018. However, the Supreme Court overturned this ban in 2020, creating a phase of regulatory ambiguity.
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Recent actions, such as India’s advocacy for crypto rules at the G-20 summit, indicate a shift towards a more nuanced approach. The country is presently crafting a five-point crypto legislative framework influenced by IMF and FSB recommendations.
This framework hints at a future where Indian crypto platforms might operate under guidelines akin to those governing authorized dealers.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
