Published December 31, 20232 min read

Crypto Storm: Indian Intelligence Reports Violations

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CoinMooner Team
artwork image for: Major Cryptocurrency Exchanges Accused of Illegal Activities in India

In today's news article, the Coinmooner team highlighted startling developments reported by India's Financial Intelligence Unit (FIU). Several major cryptocurrency exchanges are accused of engaging in illegal activities, specifically related to lack of registration and violations of anti-money laundering laws.

As emphasized in one of our articles, "Regulation and Prospects Overview of Leading Countries in 2023 by the Coinmooner Team", India holds a leading position in the global ranking of countries successfully integrating cryptocurrencies into the daily lives of their citizens. The country actively promotes the development of the crypto sphere, allowing its residents to participate in the Web3 world with minimal restrictions and regulation on this unique earning opportunity. These insights are based on a Chainalysis study published on October 23, 2023, which notes that India acquired cryptocurrencies totaling $250 billion in the past year.

Currently, the Indian government has issued compliance notices under the Prevention of Money Laundering Act (PMLA) to nine foreign cryptocurrency exchanges, including Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. Despite these exchanges holding leading positions in global cryptocurrency trading volumes, they lack authorization to operate in India. The government has not specified a deadline or consequences for non-compliance, as the country lacks specific crypto-related precedents for such actions.


Furthermore, it's important to remind our readers that while Indian authorities have recently become actively involved in the crypto industry, they have never ignored the existence of blockchain technologies and cryptocurrencies in general. However, until now, decisive steps towards regulating this sphere in the country had not been taken. It's only in the current financial year, as noted by India's Finance Minister Nirmala Sitharaman, that the government plans to implement restrictive tax measures regarding cryptocurrencies.

India, with its impressive population of 1.41 billion people, holds a leading position globally in terms of population size. The absence of strict regulatory constraints on blockchain technologies and cryptocurrencies makes it a potentially key country for the development of various projects within Web3. Additionally, it boasts a significant share of users willing to invest in innovations, making this sector strategically important for attracting audiences from this region.

The Coinmooner team will closely monitor developments in this field and provide its readers with up-to-date information on the topic. We also encourage our readers to conduct their own analysis of global events, relying only on verified sources of information. Furthermore, our team emphasizes the importance of adhering to safety rules in the crypto industry and always ensuring the security of your investments to avoid losses.

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