coinspress.com
India’s Financial Intelligence Unit has taken action against nine offshore virtual digital assets service providers, including industry giants like Binance and Huobi.
This move marks a significant development in the local crypto landscape, signaling a regulatory push. It aligns with India’s efforts to enforce its AML-CFT framework, expanded to cover VDA SPs in March 2023.
These nine entities, boasting substantial user bases in India, have operated without complying with the PML Act’s registration mandates.
The FIU’s notifications require these exchanges to address their non-compliance or risk potential website blocks within India, potentially severing ties with a considerable user segment.
India’s stance on cryptocurrency has been marked by fluctuations in policies and regulatory uncertainties.
Initially, there were discussions of an outright ban, notably seen when the RBI barred banks from engaging with crypto businesses in 2018. However, the Supreme Court overturned this ban in 2020, creating a phase of regulatory ambiguity.
READ MORE: UK Regulators Scrutinize Microsoft-OpenAI Alliance Amid Tech Giant Probe
Recent actions, such as India’s advocacy for crypto rules at the G-20 summit, indicate a shift towards a more nuanced approach. The country is presently crafting a five-point crypto legislative framework influenced by IMF and FSB recommendations.
This framework hints at a future where Indian crypto platforms might operate under guidelines akin to those governing authorized dealers.