Excerpt from Deccanherald Article, Published on Dec 28, 2023 

The Financial Intelligence Unit (FIU) has initiated action against nine offshore crypto or virtual digital asset (VDA) service providers for their failure to comply with the provisions outlined in the Prevention of Money Laundering Act (PMLA). Show cause notices were dispatched to these entities for operating in India without adhering to regulatory standards.

In a proactive move, the FIU has urged the Ministry of Electronics and Information Technology to block the URLs of these nine entities, deeming their operations “illegal” due to the absence of compliance with regulatory norms within the country.

Among the notable companies served with show cause notices are global crypto service giants such as Binance, Bittrex, Kucoin, Huobi, Kraken, Gate.io, Bitstamp, MEXC Global, and Bitfinex. These entities, acknowledged as key players in the international crypto sphere, have come under the FIU’s scrutiny for alleged non-compliance with the PMLA.

The FIU’s scrutiny further revealed concerns about three of these entities. However, the specifics of these concerns were not disclosed in the announcement.

This development underscores the government’s concerted efforts to regulate the burgeoning crypto landscape within the country and to ensure compliance with financial and regulatory frameworks. The move reflects a tightening stance on offshore entities engaged in crypto services, signaling the authorities’ commitment to monitor and enforce adherence to established norms in the crypto space.

As the regulatory landscape continues to evolve globally, such actions indicate a significant step by Indian authorities to bring offshore crypto entities within the purview of domestic regulatory frameworks.

To delve deeper into this topic, please read the full article on Deccanherald.