Binance, Kraken, Bittrex, Bitstamp, and MEXC blocked in India

abdelaziz Fathi

India’s Financial Intelligence Unit (FIU) has requested the Ministry of Electronics and Information Technology to block the URLs of nine major global crypto exchanges.

This move targets exchanges including Binance, Kraken, Kucoin, Bittrex,, Bitstamp, Bitfinex, and MEXC Global, alleging that they are operating illegally in India and failing to comply with the Prevention of Money Laundering Act.

The FIU, responsible for scrutinizing financial transactions, issued warning notices to these firms, adding that global crypto exchanges must adhere to India’s anti-money laundering regulations, regardless of their physical presence in the country.

This action is part of India’s ongoing efforts to bring cryptocurrencies under the ambit of anti-money laundering and counter financing of terrorism frameworks. As of now, 31 crypto firms have registered with the FIU, but several offshore entities catering to Indian users have not complied with these regulations.

The FIU’s decision highlights concerns about the use of global cryptocurrency platforms by Indian traders, many of whom have reportedly switched to these platforms to evade taxes. India has recently implemented stringent tax measures on virtual currencies, including a 30% tax on gains and a 1% deduction on each crypto transaction.

While India-based crypto exchanges like CoinSwitch Kuber, CoinDCX, and WazirX apply rigorous know-your-customer verifications, similar compliance is not always observed by many global platforms. This discrepancy has led to a big shift in trading volumes, with some Indian traders moving to these international apps.

“Most Indian crypto exchanges are FIU registered entities and adhere with the Prevention of Money Laundering Act. FIU IND’s recent directive to offshore Virtual Digital Assets Service Providers (VDA SPs) will help mitigate risks and create a secure VDA ecosystem,” said Sumit Gupta, co-founder and CEO of CoinDCX.

It’s currently unclear what additional ramifications, besides the URL blocking, these companies might face for failing to register with the FIU.

Trading cryptocurrencies in India is not explicitly illegal, and individuals and businesses were actively participating in the crypto market. Regarding taxation, India did impose a tax on cryptocurrency transactions. The tax rate on cryptocurrency gains was subject to the individual’s income tax bracket, which could be as high as 30%. The lack of clear regulations has led to concerns about criminal activities involving cryptocurrencies, prompting calls for regulatory clarity in the country.

Crypto transactions were categorized as capital gains, and taxpayers are required to report their cryptocurrency holdings and transactions for tax purposes. However, cryptocurrencies don’t have the status of legal tender, and they can’t be used for traditional banking activities.

  • Read this next

    Digital Assets

    Uniswap debuts Ethereum ‘uni.eth’ subdomains

    Decentralized exchange platform Uniswap has integrated Ethereum Name Service (ENS), allowing users to create human-readable domain names and cryptocurrency wallet addresses using .eth endings.


    Magic Square Expands with TruePNL Acquisition

    Binance’s web3 app store, Magic Square, acquired token platform TruePNL in a cash deal this week for an undisclosed sum. The deal brings TruePNL’s infrastructure (excluding branding & token) under Magic Square’s wing. Initially seeking a partnership, Magic Square opted for a full acquisition.

    Crypto Insider

    The Future of Prediction Markets? Zeitgeist Launches Decentralized Court System

    Polkadot-powered prediction market protocol Zeitgeist has announced the launch of its latest innovation: a decentralized court system.

    Digital Assets

    Crypto exchange Kraken fires back at SEC lawsuit, claiming overreach

    Crypto exchange Kraken is pushing back against the U.S. Securities and Exchange Commission (SEC), seeking to toss out a lawsuit that accused the platform of operating without proper registration.

    Industry News

    Exness Named a Best Place to Work in 2024

     Global leader Exness, tops in retail trading volume, earns 2024 “Best Place to Work” award, cementing its employee-centric culture after three prior years of winning the Cyprus national title.

    Digital Assets

    Swan Bitcoin taps Bakkt for crypto offering in the US

    “We are thrilled to be taking this exciting step forward in our partnership with Swan. This is just the beginning of our collaboration, as we intend to explore further growth opportunities together in the future, including expansion into international markets.”

    Digital Assets

    Polkadot Awards Bifrost a 500,000 DOT Loan to Enhance Liquid Staking Adoption

    Bifrost, a leader in liquid staking solutions, has secured a 500,000 DOT loan from Polkadot’s treasury to expand the reach and utility of its vDOT product within the ecosystem.

    Digital Assets

    FTX cleared to sell $1 billion stake in AI outfit Anthropic

    A Delaware bankruptcy court just approved a plan allowing the now-defunct FTX and its creditors to offload the exchange’s $1 billion stake in AI outfit Anthropic.

    Digital Assets

    Unveiling the Beta Version of Signal21

    Unveil the Future of Bitcoin Data with Signal21’s Beta Launch.