India's Financial Intelligence Unit (FIU) has disclosed its intention to reclaim about $345 million in tax fees from foreign crypto exchanges. The implicated trading platforms included Binance, KuCoin, Gate, Huobi, Kraken, Bittress, Bitstamp, MEXC, and Bitfinex.
It is worth noting that the latest decision became necessary after the exchanges failed to heed several warnings. Consequently, as part of the efforts to clear its name, the trading platform must satisfy conditions, proving it meets the Prevention of Money Laundering Act requirements.
🚨Financial Intelligence Unit India (FIU IND) issues compliance Show Cause Notices to nine offshore CEX
— CryptoTelugu (@CryptoTeluguO) December 28, 2023
❌Binance
❌Kucoin
❌Gate
❌Huobi
❌Kraken
❌Bittrex
❌Bitstamp
❌MEXC
❌Bitfinex
✅Okx is not in list, looks like they registered with FIU
💙Like
🔁RT pic.twitter.com/BhWp0CIgQP
Criteria for Indian Market Return
While the criteria above are significant in clearing an exchange’s name, it does not guarantee automatic market return. Several factors, including a court hearing, will determine if any trading platform can return to the Indian marketplace.
Aside from the court’s decision, fines are also a significant part of the market re-entrant conditions. Meanwhile, before now, most foreign exchanges have defaulted on the Goods and Services Tax (GST) payment routine. Hence, the charges have accumulated up to its present $345 million.
It is worth noting that while the summed-up tax might have amounted to significant values, it would have been relatively better if foreign exchanges had followed local businesses. For context, the conventional exchanges are more compliant and have followed the tax payment routine more than the traditional ones.
India Receives Global Crypto Adoption Recognition
According to a recent chain analysis documentation, India emerged as the country with the highest cryptocurrency usage. The latest ranking placed India above 154 other countries. Hence, the ranking will mark a significant win for the nation in its crypto adoption journey.
Our 2024 Global Crypto Adoption Index is here! The top 10 countries spanned 5 continents, but Central & Southern Asia and Oceania (CSAO) dominated the list. Read on to see the top 20 countries and learn about global adoption trends: https://t.co/F2nqkELtd2 pic.twitter.com/bbuG1lQ8vB
— Chainalysis (@chainalysis) September 11, 2024
Following its recently achieved milestone, several exchanges implied earlier will not want to exit the country. Therefore, it becomes apparent that most of these trading platforms will start working toward remaining in the Asian nation.
