On January 12, India enacted restrictions by denying entry to numerous offshore crypto exchanges such as Binance, Kucoin, OKX, Gate.io, and various others. This move came shortly after these platforms were eliminated from the Apple App Store in the country a few days prior.
These platforms have been served show-cause notices by the finance ministry on December 28 due to their failure to comply with the money laundering laws of the country. Consequently, the move has been made.
Binance, Kucoin, Houbi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex were all addressed by the notice, which alleged their engagement in illegal operations within India. The accusation stemmed from their non-compliance with local tax regulations and failure to register accordingly. India’s Crackdown on Offshore Crypto Exchanges
Well, well, well it looks like India is not joking around when it comes to regulating crypto exchanges. Just recently, it was reported that these offshore platforms were kicked out of the Apple App Store in the country. And now, they are facing even stricter measures as India blocks their entry altogether.
Following the alleged infringements, the finance ministry conveyed instructions to the information technology ministry, urging them to impede access to the URLs associated with these platforms. Consequently, the recent imposition of limitations on website availability came to fruition. Regardless, it remains possible to reach the websites of these exchanges by utilizing virtual private networks (VPNs).
Binance Assures Indian Users Their Funds Are Safe
Binance, to provide clarity, has sent out an email to its customer base in India, affirming the current situation. The categorical impact is solely on individuals who are trying to access either the Indian iOS app store or the Binance website from within India. Nevertheless, it has been reported that existing users utilizing the Binance app remain unharmed by this restriction.
Binance made it clear that adhering to local regulations and laws is of utmost importance to them. They stressed the importance of maintaining open channels of communication with regulators to safeguard users and promote the growth of a robust Web3 sector.
To allay the concerns of its users, the platform provided an assurance stating that the safety of all funds is ensured. It further urged users to establish direct communication through Twitter’s direct messaging feature.
Binance has acknowledged the wider implications on other players in the Web3 industry, emphasizing the importance of collaborative endeavours to promote beneficial policy-making for users and market participants. There has also been no response from Kucoin and OKX after sending emails inquiring about what is currently happening.
Frequently Asked Questions:
What led India to limit foreign cryptocurrency exchanges?
India has taken a firm stance against non-compliance with its money laundering laws by restricting entry to several websites, including Binance, Kucoin, OKX, Gate.io, and more. On December 28, the country’s finance ministry issued show-cause notices to these platforms, alleging their illicit operations within India’s borders.
At what point in time did the instances of blocking occur on the website?
On December 28, show-cause notices were issued, prompting the implementation of website blocks on January 12. A few days before this, the platforms had already been taken down from the Indian Apple App Store.
Crypto exchanges issued show-cause notices to whom?
A range of exchanges, such as Binance, Kucoin, Houbi, Kraken, Gate.io, Bittrex – Bitstamp – MEXC Global and Bitfinex received show-cause notices for alleged non-compliance.
By what means were the limitations imposed on the website?
Following allegations of violations, the finance ministry issued directives to the information technology ministry, mandating the blocking of specified platform URLs. Consequently, website restrictions were implemented. It should be emphasized, however, that the websites remain accessible through virtual private networks (VPNs).
What was Binance’s reaction to the circumstance?
An email sent by Binance to its Indian user base has validated the situation at hand. The email elucidated that the constraint predominantly impacts individuals in India who are attempting to connect to the Indian iOS app store or access the Binance website. It seems that current users who are utilizing the Binance app remain unharmed by these regulations.
Can Binance guarantee the safety of users’ funds?
Binance has guaranteed the safety of user funds, affirming its dedication to adhering to regional regulations, proactively engaging with authorities, and promoting the growth of a robust Web3 sector.
What avenues are available for users to reach out to Binance to procure additional information?
Binance urged individuals to make direct contact through Twitter messages for any questions or worries related to the matter.
Did Kucoin and OKX acknowledge the situation?
Both Kucoin and OKX have yet to respond to inquiries sent by email regarding the situation. Further details about their position have not been shared in the article.
Is it possible that people manage to ignore any restrictions on cryptocurrency exchange websites and access them anyway, having used VPNs?
Users can go through the limitations created by websites and unauthorizedly access to cryptocurrency exchange platforms prohibited for users from India using VPNs.
What implications did the banning of these cryptocurrency exchanges from the Apple App Store have?
Just before the website bans came into effect, the Apple App Store in India decided to pull out numerous offshore crypto exchanges from its listings. Among the affected exchanges were Binance, Kucoin, OKX, Gate.io, and several others. As a result, users in the country faced restricted access to these exchanges’ mobile applications, adding to the already imposed limitations on these platforms.
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