Binance, Kucoin, Other Exchanges, Served Notice By the Indian Government are Removed From Apple and Playstore, Financial Intelligence Unit India (FIU IND) issues compliance Show Cause Notices to nine offshore CEX
What Does it Mean?
India has taken measures to restrict the operations of overseas cryptocurrency exchanges, such as Binance, which it deems to be operating illegally within the country. The Financial Intelligence Unit has issued compliance show-cause notices to various platforms, including Binance, Kraken, KuCoin, and Huobi, signaling a move to block local access to their websites.
These notices were issued under a section of the Prevention of Money Laundering Act, which grants the government the authority to impose penalties on the entity, its directors, or employees, or alternatively issue warnings and instructions.
India is presently undergoing a peer review of its anti-money laundering and counter-financing of terrorism framework conducted by the Financial Action Task Force (FATF), a UN body. This review evaluates not only the technical compliance with FATF recommendations but also the effectiveness of India’s framework in combating money laundering and terrorism financing.
It’s Effect on market
🔹 Following the burst, the news quickly spread, causing widespread panic among people. Numerous instances of panic selling were observed across various cryptocurrency exchanges used by Indian users. Many platforms experienced unusual USDT/INR prices in their peer-to-peer (P2P) transactions.
🔹 Fearing a potential ban, numerous Indian users swiftly withdrew substantial funds from these exchanges. The trend of continuous fund withdrawals persisted.
🔹 Amidst the overall uncertainty, a notable positive development emerged with the significant surge in the $WRX Token. This token is the native currency of the Indian local cryptocurrency exchange, WazirX. It witnessed a rapid increase of up to 40% in less than 30 minutes.
What You should Do?
🔹 Exercise caution and avoid the Fear of Missing Out (FOMO) when considering investments related to Indian exchanges or projects. Conduct thorough due diligence before making any decisions.
🔹 Do not blindly accept information. This serves as a warning to exchanges, as the final verdict is yet to be determined. Exchanges should heed the requests of the Financial Intelligence Unit (FIU) and implement necessary services.
🔹 Enhance the security of your assets by using Web3 wallets. Binance Web3 wallet is a secure and free option available, but there are numerous alternatives in the market. Choose your preferred one wisely.
🔹 Consider using a Hardware Wallet to store your cryptocurrencies. This step can significantly increase security and protect your assets from various potential outcomes.
🔹 While crypto regulation is a positive step for its adoption, the implementation can be complex due to differing laws and rules in each country. Understand the potential outcomes and prepare accordingly, rather than succumbing to FOMO and hastily selling your assets.
Note: This composition is for informational purposes only and is not endorsed by any entity. Names mentioned are used solely for providing information. The article should be considered as a source of information and not financial advice. The disclaimer is intended to protect both the reader and the author from any liabilities related to investment decisions.