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India cracks down on 25 crypto exchanges including BingX, LBank, CoinW overcompliance failures
India's Financial Intelligence Unit (FIU-IND) has issued notices to 25 offshore crypto exchanges, including BingX and LBank, for failing to comply with anti-money laundering regulations, prompting the government to order them to withdraw their services in India. These exchanges collectively hold over $9 billion in assets and recorded approximately $20 billion in trading volume recently.
Key points
- The FIU-IND is enforcing compliance due to these exchanges' failure to register under anti-money laundering obligations.
- 25 exchanges were targeted; 14 of them hold more than $9 billion in assets.
- The Indian finance ministry previously notified the necessity for crypto exchanges to comply with regulations established in the Prevention of Money Laundering Act of 2002.
- Historically, exchanges like Binance and Coinbase were also required to register with FIU-IND, showcasing a tightening regulatory environment.
Why it matters
- This crackdown aligns with increasing global scrutiny on crypto exchanges amid growing concerns over money laundering and fraud.
- The regulatory push is in line with trends observed in various countries as they look to establish clearer frameworks for cryptocurrencies.
- The events reflect a trend where nations are prioritizing governance and consumer protection in the rapidly evolving crypto markets.
The Indian government's actions against these exchanges underscore a significant regulatory shift in the crypto landscape, aiming to enforce compliance and protect the financial system amidst rising digital asset activities.