cryptoknowmics.com
In a significant move, the Indian government has issued a show cause notice to nine prominent offshore virtual digital assets service providers (VDASPs) under local anti-money laundering laws. The Financial Intelligence Unit (FIU) has ordered the blacklisting of the domains of these exchanges, accusing them of illegal operations within the country. [embed]https://twitter.com/NischalShetty/status/1740560057656291836[/embed]
Targeted Exchanges and Lack of Authorization
The crypto exchanges named in the notice include major players such as Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. Despite being among the top global crypto trading platforms, these exchanges lack the necessary authorization to operate in India.
Legal Requirements and Taxation Measures
While cryptocurrency exchanges are permitted to operate in India, strict restrictions are imposed under local anti-money laundering laws. Additionally, these exchanges must comply with tax regulations, deducting tax at the source for every transaction conducted by traders. India enforces a 30 percent tax on crypto gains, with no provision for offsetting losses in other asset classes.