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India’s Financial Intelligence Unit issues compliance notices to offshore crypto exchanges including Binance, Kraken

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India’s Financial Intelligence Unit issues compliance notices to offshore crypto exchanges including Binance, Kraken
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India’s Financial Intelligence Unit, an agency that monitors and regulates suspicious financial activity, issued compliance notices to nine offshore crypto exchanges and asked the Ministry of Electronics and Information Technology to block their websites in the country.

The affected exchanges include Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex. The FIU said in a statement that they were operating illegally without complying with provisions of the country’s Prevention of Money Laundering Act.

The notice

“Virtual Digital Asset Service Providers (VDA SPs) operating in India (both offshore and onshore) and engaged in activities like exchange between virtual digital assets and fiat currencies, transfer of virtual digital assets, safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets are required to be registered with FIU IND as Reporting Entity and comply with the set of obligations as mandated under Prevention of Money Laundering Act 2002,” according to the statement.

“The obligation is activity-based and is not contingent on physical presence in India,” the statement continued. “The regulation casts reporting, record keeping and other obligations on the VDA SPs under the PML Act which also includes registration with the FIU IND.”

While 31 providers have registered with the agency, the FIU said that offshore entities “catering to a substantial part of Indian users” had not registered. 


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About Author

MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University’s Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.

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