India To Ban Binance & 8 Other Crypto Exchanges Over Violation Of AML Measures

India regulatory bodies took action against 9 crypto companies which provide crypto services in India without following AML & CFT measures.

In India crypto trading is legal and all the crypto investors are required to pay 30% tax against the profit generated for each crypto transaction. Also, all the crypto platforms charge 1% TDS (advance tax) from the crypto traders on every trade. Because of the TAX & TDS system, the majority of the Indian crypto traders use non-Indian crypto platforms to avoid tax & TDS charges. 

On 28 Dec 2023, The Financial Intelligence Unit (FIU) took stringent measures against nine crypto companies which provide crypto trading services for non-compliance with India’s Anti-Money Laundering and Counter Financing of Terrorism (AML-CFT) laws. 

These nine crypto companies are Binance, KuCoin, Huobi, Kraken,, Bittrex, Bitstamp, MEXC Global, and Bitfinex.

The crypto sector was added under the authority of FIU in March of this year. This Indian government body targeted these exchanges because they operated without registration and compliance with the PMLA.

Now it is time for these crypto companies to respond to the issued order and are required to submit a proper report to explain the operations & relationship with Indian crypto investors.

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The Director of FIU IND has requested the Ministry of Electronics and Information Technology to restrict the access of URLs of these crypto companies, as they are running operations without adherence to Indian laws.

At present a total of 31 crypto companies are registered with the FIU and are fully compliant with the AML and CFT framework. This latest action against these nine crypto companies is a clear signal that Indian government agencies are now active against the misuse of cryptocurrencies under Indian jurisdiction.

Just a couple of days ago, we reported that an Indian Central Bank (RBI) official talked about Cryptocurrencies in an interview with the local media.

The RBI official said that there was no upside to regulating the crypto sector & Integrate with the Indian financial economy.

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