In a significant move to curb money laundering and ensure regulatory compliance in the cryptocurrency space, the Indian government has issued compliance show cause notices to nine offshore crypto exchanges under its Prevention of Money Laundering Act (PMLA). The Financial Intelligence Unit (FIU) of India’s Finance Ministry has taken action against exchanges like Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.
This development follows the government’s mandate earlier this year, requiring crypto businesses to register with the FIU and adhere to anti-money laundering and counter-financing of terrorism measures. The government has also initiated steps to block the URLs of these exchanges, which continue to operate without compliance in India.
While the consequences and timeframe remain unspecified, this move underscores India’s commitment to bringing transparency and accountability to the crypto market, with a growing number of domestic crypto service providers registering with the FIU.