India’s Financial Intelligence Unit issues show-cause notices to Binance and eight other entities.
The Indian finance ministry has requested the Ministry of Electronics and Information Technology to block the URLs of the nine entities, alleging that they are operating unlawfully and not adhering to money laundering regulations.
The Indian finance ministry has sent compliance show-cause notices to nine offshore Virtual Digital Assets service providers, including Binance, and told the information technology ministry to block their URLs for operating illegally in the country without complying with the local money laundering laws. The nine entities are Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex
The Indian finance ministry has issued compliance show-cause notices to nine offshore Virtual Digital Assets service providers, which include Binance. Additionally, the ministry has directed the information technology ministry to block the URLs of these entities, as they are alleged to be operating illegally in the country without adhering to local money laundering laws. The nine entities named are Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.
In a statement issued on December 28, the finance ministry said that offshore and onshore Virtual Digital Asset service providers operating in India and involved in activities including exchange between virtual digital assets and fiat currencies, transfer and administration of virtual digital assets or instruments enabling control over them must register with Financial Intelligence Unit-India and comply with the provisions of the Prevention of Money Laundering Act (PMLA), 2002. Financial Intelligence Unit-India is the national agency responsible for receiving, analysing, and disseminating information relating to suspect financial transactions to enforcement agencies and its foreign counterparts.
According to a statement released on December 28, the finance ministry has outlined that both offshore and onshore Virtual Digital Asset service providers engaged in activities such as the exchange between virtual digital assets and fiat currencies, as well as the transfer and administration of virtual digital assets or instruments enabling control over them, are required to register with Financial Intelligence Unit-India. Moreover, these providers must adhere to the provisions outlined in the Prevention of Money Laundering Act (PMLA), 2002.
The Financial Intelligence Unit-India functions as the national agency tasked with receiving, analyzing, and disseminating information related to suspicious financial transactions to enforcement agencies and their foreign counterparts.