What’s inside:
This article talks about the notice issued to offshore crypto exchanges in India for not following local laws and what it means for investors.
The Financial Intelligence Unit of India (FIU-India) has issued a notice to 25 offshore crypto exchanges. These exchanges have not registered in India and are not complying with the Money Laundering Act of 2002.
Some of the exchanges mentioned include Huione, Paxful, and CEX.IO, along with others like Coinex, Bitmex, Bitrue, and Coincola. This is the second time FIU-India has taken such action; a similar notice was sent two years ago to nine major offshore exchanges like Binance and Kucoin.
The Finance Ministry has announced that the government plans to remove the apps and websites of these companies from public access. Companies do not need a physical office in India, but they must register and follow Indian laws regarding crypto transactions.
It’s important for users to know that virtual digital asset service providers (VDA SPS) must register with FIU-India. Crypto products and NFTs are considered risky, and investments on unregistered platforms will not have legal protection.
The impact of this order means that users in India might find the apps and websites of these offshore exchanges limited or blocked. Investors should focus on using recognized platforms registered with FIU-India to ensure their investments are secure.
Summary:
- FIU-India has issued a notice to 25 offshore crypto exchanges.
- These exchanges are not registered in India and violate local laws.
- The government will remove their apps and websites from public access.
- Investments in unregistered platforms will not have legal protection.
- Users should only use recognized platforms registered with FIU-India.
