India Targets Crypto: Binance & Kraken Among 9 Exchange URLs Banned

• India's Move to Block Access to Nine Cryptocurrency Exchanges
• Non-compliance with Prevention of Money Laundering Act
• The Regulation of Digital Assets Worldwide
• Increased Mandates on the Market in India
• Registration Required with Financial Intelligence Unit (FIU)
• Compliance with Anti Money Laundering (AML) and Counter Financing Terrorism (CFT) Framework
• Failure to Register Leading to Show Cause Notices

India's Move to Block Access to Nine Cryptocurrency Exchanges

In a recent move by India's Financial Intelligence Unit, the country is directing its efforts to ban 9 cryptocurrency exchange URLs. These exchanges include renowned platforms such as Binance, Kraken, and various others. The ban is also projected to impact Huobi$2.62 -0.25%, Kucoin, Bittrex, Gate$5.17 -0.37%.io, Bitstamp, Bitfinix, and MEXC Global.

Non-compliance with Prevention of Money Laundering Act

A press release indicated that the ban was initiated after these Virtual Asset Service Providers (VASP) failed to comply with the Prevention of Money Laundering Act.

The Regulation of Digital Assets Worldwide

The previous year has seen a significant surge in the regulation of digital assets on a global scale. As the industry is striving to integrate, nations worldwide are crafting their frameworks. However, in some regions, this procedure has not been as seamless.

Increased Mandates on the Market in India

India, specifically, is on the verge of banning 9 cryptocurrency exchange URLs due to non-adherence to its legislation aiming to prevent money laundering. The exchanges that are going to be affected by this include platforms like Binance, Kucoin, and Kraken. This development is unfolding while India is trying to augment mandates on the market.

Registration Required with Financial Intelligence Unit (FIU)

Earlier this year, India imposed a mandate requiring cryptocurrency firms to implement know-your-customer (KYC) data. Furthermore, these firms were instructed to register with the country's Financial Intelligence Unit (FIU). Consequently, the same unit has now called for the URL ban.

Compliance with Anti Money Laundering (AML) and Counter Financing Terrorism (CFT) Framework

VASP operators active in India are required to register with the FIU and comply with money laundering prevention controls. While 31 entities are reportedly registered with the FIU, several are failing to register and come under the Anti Money Laundering (AML) and Counter Financing Terrorism (CFT) framework.

Failure to Register Leading to Show Cause Notices

The FIU, as a result, issued show cause notices to the nine companies affected by the ban. However, no explicit consequences have been stated for the firms' failure to register.

Edited by Jonathan Stoker