MeitY to Block URLs of 9 Cryptocurrency Platforms: Check List

Financial Intelligence Unit India (FIU IND) has issued a show cause notice to 9 offshore Virtual Digital Assets Service Providers (VDA SPs) or cryptocurrency platforms for not complying with the Prevention of Money Laundering Act (PML) Act, 2002. Director FIU IND has requested the Ministry of Electronics and Information Technology (MeitY) to block the URLs of the cryptocurrency platforms for operating illegally without complying with the provisions of the PML Act in India.

List of Cryptocurrency Platforms that are Blocked

The 9 platforms that are going to be blocked by MeitY are as follows:

• Kraken
• Binance
• Kucoin
• Huobi
• Gate.io
• Bitfinex
• MEXC Global
• Bitstamp
• Bittrex

They are currently operating out of countries like United States, Singapore,  United Kingdoms and Seychelles.

Why Are the Cryptocurrency Platforms being Blocked?

VDA SPs that have operations within the country, irrespective of whether they are offshore and onshore, and involved in activities such as the exchange between virtual digital assets and fiat currencies, the transfer of virtual digital assets, and the safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets, are obligated to register with FIU IND as Reporting Entities. This registration is mandatory to comply with the stipulated obligations under the Prevention of Money Laundering Act (PMLA) 2002. It's crucial to note that this obligation is tied to the nature of the activities and is not dependent on physical presence within India. The regulatory framework imposes reporting, record-keeping, and other obligations on VDA SPs under the PML Act, which encompasses registration with FIU IND.

As of now, 31 VDA SPs have completed the registration process with FIU IND. However, numerous offshore entities, despite serving a significant portion of Indian users, have been neglecting to register, consequently evading inclusion in the Anti Money Laundering (AML) and Counter Financing of Terrorism (CFT) framework.