May 29, 2024
After FIU Ban, Indian Crypto Platforms Woo Investors from Binance and OKX
Policy & Regulation

After FIU Ban, Indian Crypto Platforms Woo Investors from Binance and OKX

In response to the Indian Ministry of Finance Financial Intelligence Unit’s (FIU) recent ban on offshore crypto exchanges such as Binance, OKX, and others, several Indian crypto exchanges are stepping up to provide users with hassle-free solutions to transfer their assets.

CoinDCX, one of the largest crypto exchanges in India by trading volume, has earmarked $1 million to assist users in moving their funds from banned foreign exchanges to compliant platforms. The move aims to alleviate the concerns of users facing restrictions due to the FIU’s regulatory actions.

Another Indian crypto exchange, BuyUcoin, has taken a customer-centric approach by announcing zero-fee transfers for users looking to repatriate their assets from offshore exchanges affected by the ban. A spokesperson from BuyUcoin expressed support for the FIU’s decision, seeing it as a positive step towards investor protection and the enforcement of capital flight rules and regulations on foreign exchange entities.

The FIU, on December 28, 2023, issued a notice of noncompliance to prominent offshore exchanges, including Binance, Huobi, Kraken, Gate.io, KuCoin, Bitstamp, MEXC Global, Bittrex, and Bitfinex. The FIU proposed potential website blocks if these exchanges failed to comply, urging the Ministry of Electronics and Information Technology to take action.

As a consequence of the FIU notice, Apple’s India app store took swift action on January 10, blocking all foreign crypto exchanges. Although initially still available on the Google Play store, the same measures were implemented within a week, creating a sense of urgency among Indian users who had turned to offshore exchanges like Binance to avoid a hefty 30% crypto tax.

Amid the regulatory changes, discussions among Indian crypto influencers surfaced regarding alternative methods for users to access banned platforms, including the use of virtual private networks (VPNs). However, BuyUcoin cautioned against this, emphasizing the potential risks of users falling victim to phishing sites and online scams associated with new URLs.

Reports suggest that OKX has taken a proactive stance by requesting Indian users to update their personal information, signalling a commitment to align with local regulations and move towards FIU compliance.

The evolving landscape of crypto regulations in India has ignited a flurry of activity within the crypto community, with Indian exchanges seeking to provide solutions for users affected by the offshore exchange ban. As the industry navigates these changes, the focus remains on ensuring a secure and compliant environment for crypto transactions in the country.

Image: Wallpapers.com

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