NEW DELHI: The government is set to
block
Binance,
Kucoin
and
Huobi
, among other global
virtual digital asset service providers
in India for their failure to register under the Prevention of Money Laundering Act (PMLA).
Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex are the other entities that are facing similar action.
In March, VDA service providers were brought into the ambit of anti-money laundering framework and were mandated to register with the Financial Intelligence Unit (FIU) and comply with compliance requirements under PMLA, which relate to reporting and record-keeping.
While the FIU has issued compliance show cause notices to the nine offshore entities, it has also written to the electronics and IT ministry to block the URLs of said outfits that are operating illegally without complying with the provisions of PMLA.
“Till date 31 VDA service providers have registered with FIU. However, several offshore entities though catering to a substantial part of Indian users, were not getting registered and coming under the anti-money laundering and Counter Financing of Terrorism framework,” an official statement said.
Over the last few months the government has tightened regulation around crypto assets, seeking to impose a tax deducted at source as well as tax on gains, to track the investors and the exchanges.
The latest move comes at a time when investigative agencies have found evidence of crypto assets being illegally used to route funds out of the country.
FAQs
The Indian government plans to block Binance, Kucoin, Huobi, Kraken, Gate.io, and Bittrex, along with other virtual digital asset service providers, for failing to register under the Prevention of Money Laundering Act.
Why was Binance banned in India? ›
In January, Binance was among nine offshore cryptocurrency platforms to be prohibited from operating in India through web addresses and mobile applications. The government's action was in response to the platforms' failure to comply with FIU and PMLA guidelines.
Is cryptocurrency legal in India in 2024? ›
Is Cryptocurrency In India Legal or Not? Cryptocurrencies as a payment medium in India are not regulated by any central authority. There are no rules and regulations or any guidelines laid down for settling disputes while dealing with cryptocurrency. So, trading in cryptocurrency is done at investors' risk.
Which crypto platform is legal in India? ›
Consider CoinSwitch if you want a safe, trustworthy crypto trading platform in India. The best part about CoinSwitch is that it supports multiple payment modes, making it convenient for users to buy their desired crypto for as little as Rs. 100.
Is it legal to use Binance in India? ›
Currently banned by the Indian government, crypto exchange Binance has reportedly received approval from the Financial Intelligence Unit (FIU) of the finance ministry to operate as a virtual asset service provider (VASP). As per an ET report, the unit also approved a similar application from Kucoin.
Is Binance fully banned in India? ›
India's stance on cryptocurrency exchanges has been clear – comply with all laws to continue operations within the country. Binance's decision to reenter the Indian market as a fully compliant entity underscores the importance of adhering to regulatory guidelines and upholding the integrity of the financial system.
Is Bitcoin illegal in India? ›
First off, owning and trading Bitcoin (and other cryptocurrencies) is legal in India. The Reserve Bank of India (RBI) classifies cryptocurrencies as "virtual digital assets" (VDAs). This indicates recognition for tax purposes, but they are not considered legal tender.
Is buying crypto in India legal? ›
Is Bitcoin legal in India? Bitcoin is not a legal tender in India. However, currently there is no law which bans the use of Bitcoin or other VDAs. Thus, you are allowed to trade in Bitcoin.
Is crypto tax free in India? ›
In India, cryptocurrencies are classified as virtual digital assets and are subject to taxation. Gains made from trading cryptocurrencies are taxed at a rate of 30% (plus 4% cess) according to Section 115BBH.
How much crypto is tax free in India? ›
Individual Income Tax Slab Rates India
| Existing Tax Regime | | |
|---|
| Up to RS250,000 | 0% | 0% |
| RS250,001 - RS500,000 | 5% above RS250,000 | 5% above RS250,000 |
| RS500,001 - RS1,000,000 | RS12,500 + 20% above RS500,000 | RS12,500 + 10% above RS500,000 |
| Above RS1,000,000 | RS112,500 + 30% above RS1,000,000 | RS37,500 + 15% above RS750,000 |
2 more rowsIn conclusion, the best crypto exchanges in India include Mudrex, CoinDCX, CoinSwitch, WazirX, ZebPay, and BitBNS based on several factors like ease of use, security, fees, coin availability, and more.
Is Unocoin legal in India? ›
Financial Regulation
The Service we provide is currently unregulated within India.
Is Coinbase legal in India? ›
Coinbase restricts people from certain countries, including India, from using its wallet service due to regulatory and compliance reasons. Coinbase is a U.S.-based company, and as such, it is subject to U.S. laws and regulations, including sanctions programs.
Can I use my Indian Binance account in USA? ›
Can I use Binance in the US with a VPN? Yes, you can use a VPN to gain access to Binance.com in the US. A VPN hides your real IP address and location behind an IP address belonging to your provider in the country you connect to.
Is Kucoin legal in India? ›
The Financial Intelligence Unit – India (FIU-IND) has reportedly approved offshore cryptocurrency exchanges Binance and Kucoin to operate in the country as Virtual Asset Service Providers (VASPs). FIU-IND Director Vivek Aggarwal told reporters on Friday: So Kucoin and Binance have got registered with FIU India …
Which is the best crypto wallet in India? ›
Compare The Best Bitcoin Wallets In India
| Credit Card | Forbes Advisor Rating | Cryptocurrencies Supported |
|---|
| CoinDCX | 4.5 | 300+ |
| WazirX | 4.5 | 300+ |
| Mudrex | 4.5 | 350+ |
| Ledger Nano S Plus | 4.4 | 5,500+ |
1 more rowAfter a regulatory pause, Binance is making a comeback in India. The leading cryptocurrency exchange has now registered with India's Financial Intelligence Unit (FIU), allowing it to resume operations which were previously halted in December due to non-compliance issues.
Why are they banning Binance? ›
The SEC first issued a public warning against Binance on Nov. 29 last year, and has since been studying the possibility of blocking its website “and other online presence” in the Philippines. This came after Binance CEO Changpeng Zhao pled guilty to violating US anti-money laundering laws last year.
Why Binance is banned in some countries? ›
As a result, Binance has been banned from operating or ordered to cease operations in some countries, and has been issued fines. It has been alleged that Binance could be used as a funding mechanism for terrorist groups.
Why is Binance banned? ›
The SEC said in a press release on Monday that the exchange's online pages were found to have offered an investment and trading platform without the necessary license from the financial watchdog.
