The Indian Financial Intelligence Unit (FIU), under the Ministry of Finance, has issued show cause notices to nine offshore cryptocurrency exchanges for alleged violations of the country’s anti-money laundering (AML) laws. As part of regulatory compliance measures, the FIU has called for the blocking of their URLs within India.
The notice targets prominent exchanges, including Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfenex. These exchanges, operating both within and outside India, are accused of evading registration with FIU India as mandated by the Prevention of Money Laundering Act (PMLA) of 2002.
The PMLA necessitates virtual digital asset service providers to register with FIU India, ensuring adherence to AML and Counter Financing of Terrorism (CFT) frameworks. While 31 such providers have complied, several offshore entities serving Indian users have allegedly circumvented registration, raising concerns about their compliance with financial regulations.
The FIU India, responsible for receiving, processing, and sharing information on suspicious financial transactions, emphasizes the significance of regulatory compliance in safeguarding against illicit financial activities.
This action underscores the government’s commitment to enforcing stringent AML measures in the burgeoning cryptocurrency landscape. The call to block URLs aligns with efforts to ensure compliance and accountability within the rapidly evolving digital asset sphere.
