India has issued a directive to block access to Binance and eight other cryptocurrency exchanges, according to a decision by the national financial agency, the Financial Intelligence Unit of India.
A press release from this agency states that this action is a consequence of the exchanges’ failure to adhere to the regulations outlined in the Anti-Money Laundering Act. Additionally, the Indian financial agency has announced the initiation of a notice of reasons for complaint against these nine cryptocurrency exchanges.
The list of blocked cryptocurrency exchanges includes Binance, Kraken, Bitfinex, Bittrex, Gate.io, Kucoin, Huobi, Bitstamp, and MEXC. According to the provisions of the Anti-Money Laundering Act, both domestic and international exchanges must register with the regulatory authority.
Currently, 31 cryptocurrency exchanges have registered; however, some, particularly those with a large user base from India, have yet to comply with the regulations concerning anti-money laundering and counter-terrorism financing.
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In addition to promoting the registration process, India has also implemented a stringent tax system for cryptocurrency investors. The Indian Ministry of Finance has passed a law mandating a 1% withholding tax on transactions exceeding $600 in an accounting period. Furthermore, the government imposes a 30% tax on profits derived from buying and trading cryptocurrencies.
