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Is This The Start of a Golden Era for Crypto in India

Key Takeaways
  • India has tightened regulations on offshore crypto exchanges like Binance and Kraken, requiring compliance with FIU IND guidelines for operations within the country.
  • This move, backed by 31 Indian VDA service providers registering with FIU IND, could signal the dawn of a promising era for cryptocurrencies in India.
  • The government's proactive approach, including educational integration and blockchain projects, suggests growing acceptance and potential for cryptocurrencies.
03-Jan-2024 By: Sudeep Saxena
Is This The Start of

Crackdown On Offshore Exchanges Signals India's Crypto Boom

The Indian government has tightened regulations on offshore cryptocurrency exchanges, issuing notice to foreign crypto exchanges like Binance and Kraken to comply with the guidelines set by the Financial Intelligence Unit of India (FIU IND) if they wish to operate within India.

As part of the regulatory measures, 31 Virtual Digital Asset (VDA) service providers in India have registered with FIU IND, indicating their adherence to the government's cryptocurrency trading regulations. This move could mark the beginning of a golden era for cryptocurrencies in India.

Ministry of Finance tightens the crackdown on offshore crypto exchanges

The Ministry of Finance has issued notices to offshore crypto exchanges, including Binance and Kraken, citing their failure to comply with provisions of the Prevention of Money Laundering (PML) Act and engage in unauthorized transmission of cryptocurrencies.

For these prominent foreign exchanges to continue their operations in India, they must register with FIU IND and adhere to all cryptocurrency-related guidelines set by the Indian government.

However, it's crucial to note that this does not necessarily imply the government's opposition to cryptocurrencies. Except for RBI Governor Shaktikanta Das' concerns, there hasn't been any negative news from the Indian government regarding cryptocurrencies.

In fact, India proposed a common crypto regulatory framework in a G20 meeting, receiving support from all participating countries.

Golden era may begin for cryptocurrency in India

This step against offshore crypto exchanges could herald a golden era for cryptocurrencies in India. Indian crypto exchanges can regain their lost ground, as it is a perfect time for them. The country has been gradually but steadily embracing crypto, as exemplified by its pivotal role in formulating a regulatory framework for cryptocurrencies.

Moreover, the government has been proactive in raising awareness about cryptocurrencies and blockchain technology, incorporating them into school education in states like Uttar Pradesh, the most populous state in India.

The future holds the promise of increased awareness about cryptocurrencies in India, bolstered by various projects utilizing blockchain technology, such as using blockchain for vaccination-related data during the COVID-19 pandemic in several Indian states.

Presently, the government is considering employing blockchain technology in healthcare, agriculture, finance, voting, and e-governance.

Indian cryptocurrency exchanges are also aligning themselves with the government's stance, as evident from the 31 VDA service providers registering with FIU IND. This step by Indian exchanges reflects a positive outlook towards the government's cryptocurrency policies. If foreign exchanges also adhere to India's conditions and regulations, they can easily continue their operations in the country.

Overall, the government's perspective on cryptocurrencies signals the onset of a golden era for crypto, initiated by the steps taken currently.

Also Read: MicroStrategy Saylor's Share Sell-Off Fueling Bitcoin Passion

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