Indian Crypto Exchanges Assist Users Amid FIU Ban on International Platforms
Summary:
Indian cryptocurrency exchanges offer simplified transfers for users attempting to transfer assets from internationally banned crypto platforms. CoinDCX and BuyUcoin, significant Indian markets, provide lowered fees to encourage such transfers following a ban put in place by the Financial Intelligence Unit (FIU). The FIU's move, prompted by the illegal operation of several international platforms in India, has been met with mixed responses. While some users resort to VPNs, exchange platforms advise against this due to potential online scams or asset loss.
Domestic cryptocurrency exchanges in India are offering easy transfer options for assets held in foreign platforms following an IP restriction by the Financial Intelligence Unit (FIU) on international cryptocurrency outlets such as OKX and Binance. Several Indian cryptocurrency markets are enticing individuals with stranded assets in foreign exchanges via enticing reduction in fees. CoinDCX, one of India's largest crypto exchanges in terms of transaction volume, has pledged $1 million to facilitate customers in moving their assets to compliant brokerage platforms.
Subsequently, BuyUcoin, another of India's crypto exchanges, announced that transfers from international platforms would incur no fees in response to the FIU's prohibition. A company spokesperson commented to Cointelegraph, saying they consider the FIU's decision to be a positive move towards investor safety and a way to enforce legislation regarding capital flight and foreign currency entities.
The FIU, a division of the Indian Finance Ministry, sent a non-compliance notice to a series of major platforms including Binance, Huobi, Gate.io, Kraken, KuCoin, Bittrex, Bitstamp, Bittrex, and others, accusing them of illegally conducting operations in India. This notice was issued on 28th December 2023, and the FIU offered a week's time for cryptocurrency exchanges to respond, with instructions for the IT department to block the relevant URLs if there was a failure to comply.
The Indian App Store for Apple blocked all international crypto exchanges about a fortnight after the FIU's notice, on the 10th of January. However, these apps were still available for Android users, this changed a week later when they were also blocked from Google's app store. This led to local panic as users had been flocking to platforms like Binance to avoid a 30% crypto tax.
There were several tips shared by Indian cryptocurrency influencers with users for staying connected to the banned platforms, including using virtual private networks (VPNs). However, BuyUcoin warned against this, stating that these actions could lead to substantial risks including asset loss or fraud due to phishing websites and other types of online scams.
One of the penalized foreign crypto exchanges, OKX, reportedly began asking its Indian clients for updated personal information to adhere to local guidelines, pointing towards a move in the direction of complying with FIU regulations.
Published At
1/16/2024 11:33:07 AM
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