Google has removed access to foreign crypto exchanges Binance, Kucoin, OKX, and much more allegedly for financial violations. According to reports, India has also blocked access to the web platforms of these crypto exchanges as well by stating financial violations and nation security tagline. The access has been blocked because these companies failed to comply with show cause notices served by the Financial Intelligence Unit. Apple also removed access to these crypto exchanges after a legal recommendation. The Government contends that these companies are not following the money laundering laws of the country.
The Financial Intelligence Unit (FIU) issued notices to Binance and eight other cryptocurrency exchanges on December 28 for a detailed clarification. The FIU officials revealed that these companies are operating illegally and are not compliant with the local laws regarding money laundering. The reports suggest that the time limit for responding to the notices lapsed on January 12. The recommendation for blocking URLs of these platforms was given to the Union IT Ministry.
According to Edual Patel, Mudex CEL, the regulatory authority has advised investors to transfer funds to compliant platforms. The company has been providing support for a seamless fund transfer from other exchanges by following compliance standards. Edual added that Indian investors should maintain assets in FIU-compliant companies because it provides legal remedies against fraud.
According to reports, the unauthorized crypto exchanges cause a huge tax leakage of over Rs 3000 crore per year because they are not registered in India. The latest move by the Government will help domestic exchanges, which have seen spike in registrations. The non-compliance by International players will surely attract more investors to Indian exchanges. This will create a level playing field. The domestic players have approached Modi Government to slash the 1% TDS. They are expecting good news when the Finance Minister presents Union Budget 2024 on February 1.
