India’s Financial Regulator Targets Nine Major Crypto Exchanges for Compliance Violations

India’s Financial Regulator Targets Nine Major Crypto Exchanges for Compliance Violations

Crypto News – The Financial Intelligence Unit of India (FIU IND) has recently issued a formal document taking significant actions against nine notable cryptocurrency exchanges. This move suggests the potential for further regulatory measures against these entities.

In a detailed statement, the FIU IND disclosed that it had served Show Cause Notices to nine offshore Virtual Digital Assets Service Providers (VDA SPs). These notices were issued under Section 13 of the Prevention of Money Laundering Act, 2002 (PMLA), marking a significant step in regulatory enforcement.

The regulator specifically identified major crypto exchanges, including Binance, KuCoin, and Huobi, as operating in violation of Indian laws. The Director of FIU IND has reportedly contacted the Secretary of the Ministry of Electronics and Information Technology, requesting a block on the URLs of these entities. This action is based on their illegal operation in India, primarily their non-compliance with the PML Act provisions.

Additionally, the document emphasizes the failure of these cryptocurrency exchanges to meet the necessary registration requirements in India. It explicitly states that these exchanges must register with the FIU IND as Reporting Entities and adhere to the obligations mandated under the Prevention of Money Laundering Act (PMLA) 2002.

India’s Push for Global Crypto Regulation Amid Challenges in Domestic Enforcement

The issue of cryptocurrency regulation continues to be a focal point in India. In April, Indian Finance Minister Nirmala Sitharaman proposed a unified framework for G20 countries to regulate the crypto sector. This proposal comes at a crucial time as India holds the presidency of the G20, bringing cryptocurrencies into the limelight of international discussions.

Recent reports from BeInCrypto have also highlighted the challenges faced by the Indian government in handling complex cryptocurrency cases. A judge from India’s Supreme Court raised concerns about the government’s capacity to manage such cases, citing the limitations of the current law enforcement framework as a primary concern.