In a surprising twist of events across the Indian crypto landscape, Binance, the world’s leading crypto exchange, witnessed a noteworthy setback leading to an exodus of Indian traders on its platform. This comes as a result of the Indian Financial Intelligence Unit’s (FIU) most recent stance on offshore crypto exchanges, mandating them to comply with the nation’s anti-money laundering laws.

Intriguingly, this crackdown by the FIU seems to have sparked a prompt surge in the nation’s locally registered crypto exchanges, leading to speculations among Indian traders registered on Binance. Meanwhile, the platform stopped working in India on Friday, alarming further apprehensions among Indian users on the platform.

FIU Cracks Down On Offshore Crypto Exchanges

According to a notice issued by the FIU in late December, the regulatory body proclaimed that nine exchanges operated illegally in India, defying the nation’s anti-money laundering provisions rolled out last year. Furthermore, the regulatory body urged these exchanges to untangle the intricacies surrounding how they comply with these provisions.

Notably, aligning with this, the FIU facilitated a local ban on these nine exchanges’ websites, stirring a whirlpool of speculations among Indian crypto traders and investors. Moreover, as of Friday, January 12, their URLs stopped functioning throughout India, along with Apple Inc’s app store pulling the Binance app out from the country. However, their apps were still available on Google Play in the country.

Among these nine exchanges, the sudden and abrupt cessation of Binance appears to have gained the most traction in India. A colossal surge in Indians taking their concerns to Binance’s customer support account on X further reflects this.

Moreover, as per Binance’s statement on X, the firm’s commitment persists in complying with local regulations and laws, robustly engaging with regulators to safeguard users and foster a thriving Web3 industry.

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Binance’s Exit Propels Local Crypto Exchanges

According to reports, soon after Binance halted activity, a prompt surge spiked within the country’s locally registered crypto exchanges. As of writing, exchanges like WazirX, CoinDCX, etc., appear to be garnering additional users on their platforms following Binance’s abrupt exit. However, the firm’s statement claims that Binance constantly fosters efforts to resolve the ongoing issue.

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The post Binance Dethroned As Indian Traders Flock To Local Firms Amid Regulatory Scrutiny appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am