Here is how India’s FIU ban will affect your crypto investment

The Indian government recently issued a notice against nine crypto exchanges in India. After the notice, the Apple India app store removed Binance and other exchanges from its store.

The nine names included Huobi, Binance, KuCoin, Gate.io, Bitstamp, Bitfenex, MEXC Global, Kraken, and Bittrex. OKX, another popular crypto exchange, was also removed from the app store without getting any notice.

India’s FIU (Financial Intelligence Unit) issued compliance notices under its PMLA (Prevention of Money Laundering Act). For starters, the government blocked the URLs of these entities operating without complying with the Act.

Since the process requires heavy-duty paperwork, some of these top crypto exchanges in India are still operating. Although Apple has removed the apps from its app store, the Google Play Store is yet to follow.

Binance addressed the issue in a recent tweet, indicating that it is aware of the adjustments made to the Indian iOS App Store. The exchange assured users that it was adhering to local legislation in order to preserve transparent communication.

The issue will not impact any existing users, and the Binance team is continuing to work with the regulators to find common ground.

According to the rules, any digital asset service provider, whether operating within or outside India, must register with FIU IND as a Reporting Entity.

These entities must also adhere to the stipulated requirements made under the 2002 PMLA. However, several offshore exchanges have failed to follow through on the Act, forcing authorities to take this step.

As stated by Binance, the ban is not likely to impact any existing users on these exchanges. However, if they intend to operate in India, a major crypto hub, the exchanges must comply with the PMLA.

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Meanwhile, WazirX, UnoCoin, ZebPay, CoinDCX, CoinSwitch, and Mudrex are still operating in India.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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