India Issues Notices to Binance and Other Exchanges for Anti-Money Laundering Non-Compliance

The Indian Ministry of Finance has issued notices to Binance and eight other offshore exchanges for non-compliance with anti-money laundering policies. These notices, from the Financial Intelligence Unit (FIU), target Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex, as mentioned in a circular from December 28.

Additionally, the FIU plans to isolate local investors from these platforms and has begun actions to block URLs of Virtual Digital Assets Service Providers not complying with regulations.

The FIU’s statement highlighted that this action against Binance and the other foreign exchanges is in line with the Prevention of Money Laundering Act (PMLA) in India. However, no deadline for the cautioned platforms to respond has been given.

The Indian Ministry requires crypto businesses to register with the FIU and adhere to PMLA rules. This directive, announced in March, led to 28 cryptocurrency firms registering with the national anti-money laundering agency by December 4, as reported by crypto.news.

This obligation applies based on activities and is independent of physical presence in India. The regulation imposes reporting, record-keeping, and other duties on Virtual Digital Asset Service Providers under the PML Act, including registration with the FIU IND.

In India, the status of crypto remains uncertain, with differing opinions among regulators on how to approach this emerging sector. The Indian Finance Minister, Nirmala Sitharaman, has advocated for international cooperation to create a comprehensive crypto framework and encouraged consideration of blockchain technology’s benefits.

However, the Reserve Bank of India maintains a firm stance against crypto, advocating for a total ban on virtual currencies.

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