India demands ban on 9 crypto exchanges

India's Financial Intelligence Unit (FIU) has issued an alert against nine crypto exchanges, according to a statement from the Ministry of Finance. In the statement Among others, Binance and Kraken are accused of operating illegally in the country and violating the money laundering laws. The FIU is also demanding that the Ministry of Electronics and Information Technology block the web addresses of the crypto exchanges in question. This would amount to a de facto ban on activities.

In addition to Binance and Kraken, Kucoin, Huobi, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex are also affected. "Virtual digital asset providers" (VDA SPs) in India are therefore required to register with the FIU. This applies regardless of whether they operate "offshore or onshore," as it says. 31 service providers are already registered. However, "several offshore companies serving a significant portion of Indian users" have not been registered.

In the past, the country has taken a tough stance against the crypto sector. For example, a 30 percent capital gains tax on cryptocurrencies. caused a collapse in trading volumes. In addition, India's central bank called for a ban on DeFi and stablecoins and international standards to curb the crypto market globally.