Indian Govt issued notice to 9 International exchanges

India is again on the news because of some latest news. Indian financial unit has issued the show cause notice to 9 international exchanges and this includes the Binance and Huobi exchange. This year in the month of March the government asked these exchanges to comply with anti money laundering act which is known as PMLA. Now following that proceeding for the notices are issued to the exchange is for reasons that why they are not in line as per compliance.

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Last year taxation was implemented on the Crypto in India and effective July another tax was introduced which is known as TDS. This tds mechanism is introduced to track the crib to sell transactions on exchange is however the international exchange offer still not following these and because of that majority of the uses moved from the local exchange is to foreign exchanges. Because of this migration the trading volume was dropped by over 95%. Majority of Crypto exchange is in India are struggling with the trading volume and now if the government is trying to control the TDS part then properly some users will move back to the Indian exchanges because TDS is implemented by all the exchanges operating in India and they have local presence.

The good thing is that the government did not talk about banning Crypto and they are not talking about regulating it hence you can be happy but we need to understand that the government is trying to have control on everything including the send and receive transactions performed on the exchanges. They have also mentioned that if any international exchange will not comply with the regulations then they will block the URL in the country which will not allow them to serve Indian users.

If any international exchange is providing the services to Indian users then the exchange will have to comply with the regulations and fulfill all the requirements. If they don't comply then the government will block their urls in the country and their after they will not be able to accessible for the Indian users however they are can be a situation when people can have access to the exchange using the VPN. In simple words we can say that the government is asking all these exchanges to get registered in India if they want to continue providing the services to the Indian users which can also be considered as a good step because they did not talk about banning anything.

The notices were issued by India's Financial Intelligence Unit (FIU) which falls under the nation's Finance Ministry.
Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex are the nine exchanges. The government has also taken the first steps to block the URLs of "said entities that are operating illegally without complying with the provisions of the PMLA in India."

Now let's see how these exchanges are going to respond and if some of them agree to comply with the regulations and whatever is the requirement asked by the Indian financial unit. This has happened in the past when any company did not follow the Indian norms are banned in the country and reinstate has not happened even after a few years. I hope some leading exchanges like Huobi or Binance etc agree for this and this will not create issues for users as well as exchanges.

Thank you

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