Nine international cryptocurrency exchanges, including Binance, Kraken, Kucoin, and Mexc, are allegedly operating “illegally” in India without abiding by the local anti-money laundering act has been blocked in India.
The Financial Intelligence Unit, an Indian government agency that monitors financial transactions, said on Thursday and requested that the IT Ministry block their websites.
All nine of the firms have received show-cause notices, according to FIU. According to the government body, international cryptocurrency exchanges cannot circumvent India’s anti-money laundering regulations just because they are not physically present in the country.
“However, several offshore entities though catering to a substantial part of Indian users were not getting registered and coming under the Anti Money Laundering and Counter Financing of Terrorism framework,” it said.
In an apparent attempt to avoid paying taxes, a large number of Indian dealers have recently shifted to international cryptocurrency platforms. India started taxing virtual currencies last year. Gains are subject to a 30% tax, and each cryptocurrency transaction is subject to a 1% deduction.
