India has ramped up its regulatory measures against
offshore cryptocurrency exchanges, directing Apple to eliminate the apps of
platforms such as Binance from its App Store within the country.
According to a report by Bloomberg, this recent escalation follows a notice from the
Financial Intelligence Unit (FIU) targeting nine platforms suspected of
regulatory misconduct in late December, signaling a tightening grip on the
crypto landscape.
The Ministry of Electronics and Information
Technology prompted the removal of apps from platforms
like Bitfinex, HTX, and Kucoin, among others, from the Indian App Store. While
these directions weren’t made public, sources familiar with the matter
disclosed this intervention, showcasing a firm stance against non-compliant
offshore exchanges.
India’s stance against offshore crypto platforms
heightened following the December 28 notification to nine exchanges suspected
of operating unlawfully. Fearful of potential fund access loss, Indian crypto
traders had already begun shifting deposits to locally compliant exchanges
adhering to the nation’s regulations.
India’s FIU issued compliance show cause notices to
the offshore platforms on December 28, urging the information ministry to block
their URLs. Additionally, Asia’s second-most populous country
implemented anti-money laundering provisions within the crypto sector, adding a
1% levy called Tax Deducted at Source.
The step reportedly led to a migration of trading
volumes to offshore venues. Local exchanges were affected as traders sought
platforms that did not impose this tax, significantly reducing their trading
revenues.
Expect ongoing updates as this story evolves.
India has ramped up its regulatory measures against
offshore cryptocurrency exchanges, directing Apple to eliminate the apps of
platforms such as Binance from its App Store within the country.
According to a report by Bloomberg, this recent escalation follows a notice from the
Financial Intelligence Unit (FIU) targeting nine platforms suspected of
regulatory misconduct in late December, signaling a tightening grip on the
crypto landscape.
The Ministry of Electronics and Information
Technology prompted the removal of apps from platforms
like Bitfinex, HTX, and Kucoin, among others, from the Indian App Store. While
these directions weren’t made public, sources familiar with the matter
disclosed this intervention, showcasing a firm stance against non-compliant
offshore exchanges.
India’s stance against offshore crypto platforms
heightened following the December 28 notification to nine exchanges suspected
of operating unlawfully. Fearful of potential fund access loss, Indian crypto
traders had already begun shifting deposits to locally compliant exchanges
adhering to the nation’s regulations.
India’s FIU issued compliance show cause notices to
the offshore platforms on December 28, urging the information ministry to block
their URLs. Additionally, Asia’s second-most populous country
implemented anti-money laundering provisions within the crypto sector, adding a
1% levy called Tax Deducted at Source.
The step reportedly led to a migration of trading
volumes to offshore venues. Local exchanges were affected as traders sought
platforms that did not impose this tax, significantly reducing their trading
revenues.
Expect ongoing updates as this story evolves.
