India Blocks Web Platforms of Offshore Crypto Apps, Including Binance, Kucoin, and Others
India has taken action to block access to foreign cryptocurrency exchanges and virtual digital asset service providers such as Binance, Kucoin, and OKX. The move is part of the government’s efforts to combat potential money laundering activities associated with these platforms. The Android versions of these apps are also expected to be removed.
The decision to block access to these offshore platforms is seen as a boost to domestic cryptocurrency exchanges, as some of them are already experiencing a surge in registrations. The Ministry of Electronics and Information Technology (MeitY) had recently requested Apple to remove offshore cryptocurrency apps from its store.
A senior government official revealed that orders to take down the Android versions of these apps have already been issued. The action was prompted by inputs from the finance ministry’s Financial Intelligence Unit (FIU), which raised concerns about possible money laundering activities facilitated by these platforms.
These (offshore) platforms were operating (in India) without the necessary permits and approvals. Finance ministry inputs also pointed to multiple instances of these wallets being used illegitimately and for money laundering, stated an official from MeitY. The matter is currently under investigation.
The government’s actions are based on reports and show-cause notices issued to these cryptocurrency exchanges by the FIU. On December 28, the FIU sent notices to Binance and eight other exchanges, questioning their operations in India as they were operating without proper permissions and failing to adhere to anti-money laundering laws.
The FIU recommended that the IT ministry block access to the uniform resource locator (URL) of these platforms, leading to the recent government’s move. The platforms were given two weeks to respond to the notices, which expired on Friday.
There have been suggestions that the government may ban offshore cryptocurrency dealing apps like Binance if they are found guilty under the Prevention of Money Laundering Act. The actions taken by the government are aimed at ensuring compliance with regulations and preventing potential misuse of these platforms for illicit purposes.
It is important to note that the government’s decision to block access to offshore cryptocurrency exchanges is part of its effort to maintain oversight and regulate the digital asset space in the country. By doing so, the government hopes to create a more secure and transparent environment for cryptocurrency trading while safeguarding against potential money laundering risks.
As the investigation continues and discussions on the future of offshore crypto platforms unfold, the domestic cryptocurrency exchanges are likely to benefit from the increased attention and regulatory measures. Industry insiders believe that the government’s actions will help establish a robust and compliant cryptocurrency ecosystem within India.
The blocking of these offshore platforms should serve as a reminder to investors and traders to exercise caution and conduct proper due diligence before engaging with any cryptocurrency exchange or virtual asset service provider. It is crucial to ensure that these platforms are operating within the legal framework and hold the necessary permits and approvals.
While the availability of offshore platforms may have been restricted, the Indian cryptocurrency market continues to evolve and adapt. Domestic exchanges are ready to cater to the growing demand for digital asset services, offering investors and traders a regulated and secure platform to engage in cryptocurrency transactions.
India’s move to block access to offshore crypto apps reflects the global trend of governments tightening regulations around the cryptocurrency ecosystem. As the industry matures, regulatory scrutiny and compliance measures become increasingly important to foster investor confidence and protect against potential financial crimes.
It remains to be seen how the situation will unfold in the coming weeks and what further actions the government may take to regulate the cryptocurrency landscape in India. Industry participants and investors will be closely watching for updates and developments in this rapidly evolving sector.
