Indian authorities have accused Binance and other leading exchanges of failing to comply with AML laws

Financial Intelligence called for platform websites to be blocked in the country

29.12.2023 - 11:32

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What’s new? The Financial Intelligence Unit India (FUI) has accused leading foreign exchanges of non-compliance with the Prevention of Money Laundering Act (PMLA). As such, officials have asked the Ministry of Electronics and Information Technology to block the websites of the platforms in the country. The list includes Binance, Kucoin, HTX (formerly Huobi), Kraken, Gate, Bittrex, Bitstamp, MEXC, and Bitfinex.

Press release

What else is known? The press release specifies that as of March this year, virtual asset service providers are required to register with the FUI, comply with anti-money laundering and counter-terrorist financing legislation, and file relevant reports.

The requirement applies to all platforms providing services to residents of India, regardless of whether they have a local presence. By the end of the year, 31 crypto companies had registered with the FUI.

Earlier, the Central Bank of India opposed the integration of cryptocurrencies into the financial system, stating that in their current form, such assets do not bring benefits to the economy.

In November, the Ministry of Information of Kazakhstan blocked the website of the US crypto exchange Coinbase for violating the law. Thus, the issue and circulation of digital assets in the country are allowed only within the framework of the Astana International Financial Centre (IFCA), which license Coinbase does not have.

Binance previously paid a $4,3 billion fine to settle US Treasury Department money laundering charges. Binance founder Changpeng Zhao, who stepped down as CEO of the global exchange and chairman of the board of the US arm, will stand trial on the case in February next year. The businessman could face up to 18 months in prison, with a ban on leaving the country until the date of the hearing.

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