India bans foreign crypto platforms like Binance, Kucoin. What should investors do now?
IANS
Synopsis
Access to websites of top global cryptocurrency exchanges and virtual digital asset service providers such as Binance, Kucoin, OKX, and others, were blocked in India on Friday.
By Navdeep Singh, ETMarkets.com
Access to websites of top global cryptocurrency exchanges and virtual digital asset service providers such as Binance, Kucoin, OKX, and others, were blocked in India on Friday. This comes after the government sent show-cause notices to these crypto exchanges for not complying with the country's money laundering laws.
On the development, Edul Patel, CEO of Mudrex, said, "In response to the FIU’s show cause notices to non-compliant crypto exchanges, we took proactive steps, advising investors to transfer their funds to compliant platforms. We are also providing dedicated support to ensure seamless fund transfers from other exchanges, upholding the highest safety and compliance standards."
"Indian investors should always aim to have their assets in the FIU compliant entities as it gives them a way for legal recourse against any fraudulent activity on their account," Edul suggested.
On Friday, ET had reported the Centre could ban offshore cryptocurrency dealing apps such as Binance if they are found guilty under the Money Laundering Act.
Blocking of access to these foreign platforms is set to help domestic cryptocurrency exchanges, some of which are already witnessing a surge in registrations, industry executives said.
According to industry estimates, nearly $4 billion worth of crypto assets are still parked in offshore platforms to circumvent the 1% tax deducted at source applicable on the exchange of virtual digital assets. Nearly 80% of this is held by Binance, people in the know told ET.
“Retail traders have still not shifted their holdings to avoid the tax levy. Only a minuscule sum has flown back to India. People who have already downloaded the apps on their phones can still access their wallets, but withdrawals and UPI transfers will not be possible,” a person close to the development told ET.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
ADVERTISEMENT
Earlier, on December 28 last year, show cause notices were sent to Binance, Kucoin, Bittrex, Bitstamp, MEXC Global, Houbi, Kraken, gate.io and Bitfinex for operating illegally in India. The notice was issued because these companies failed to comply with registration and local tax rules. As a result, the Finance Ministry directed the Ministry of Information Technology to block their URLs.On the development, Edul Patel, CEO of Mudrex, said, "In response to the FIU’s show cause notices to non-compliant crypto exchanges, we took proactive steps, advising investors to transfer their funds to compliant platforms. We are also providing dedicated support to ensure seamless fund transfers from other exchanges, upholding the highest safety and compliance standards."
ADVERTISEMENT
"Indian investors should always aim to have their assets in the FIU compliant entities as it gives them a way for legal recourse against any fraudulent activity on their account," Edul suggested.
On Friday, ET had reported the Centre could ban offshore cryptocurrency dealing apps such as Binance if they are found guilty under the Money Laundering Act.
Blocking of access to these foreign platforms is set to help domestic cryptocurrency exchanges, some of which are already witnessing a surge in registrations, industry executives said.
ADVERTISEMENT
According to industry estimates, nearly $4 billion worth of crypto assets are still parked in offshore platforms to circumvent the 1% tax deducted at source applicable on the exchange of virtual digital assets. Nearly 80% of this is held by Binance, people in the know told ET.
Stocks Recommendations
“Retail traders have still not shifted their holdings to avoid the tax levy. Only a minuscule sum has flown back to India. People who have already downloaded the apps on their phones can still access their wallets, but withdrawals and UPI transfers will not be possible,” a person close to the development told ET.
ADVERTISEMENT
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
