Indians turn to local exchanges amid restrictions on foreign platforms
India blocked access to global crypto exchanges including Binance, KuCoin and OKX on January 12. India has created an IP block that prevents Indians from accessing URLs of foreign crypto platforms.
However, according to CryptoSlate’s research, as of the date of publication, it was still possible to access binance, OKX, and kucoin websites via Google Chrome without using a virtual private network (VPN). Although the OKX and Kucoin websites were not accessible, the Binance website could also be accessed through Safari and Mozilla Firefox browsers without any VPN.
The Ministry of Electronics and Information Technology on January 10 asked Apple to restrict Indians’ access to foreign exchange apps. As of the time of writing, both iOS and Android app stores have restricted access to foreign crypto exchange apps to Indians.
The move comes after the Financial Intelligence Unit (FIU) of the Ministry of Finance warned that some international exchanges may be used for money laundering purposes, a government official told the Economic Times.
Foreign exchange restrictions are coming
The Financial Intelligence Unit’s warning comes nearly two weeks after it issued show-cause notices to nine foreign exchanges operating in India. This includes Binance, KuCoin, huobi, OKX, Kraken, gate.io, MEXC Global, bitfinex and Bittrex.
The demonstrative statement alleged that the exchanges were operating illegally in India and did not comply with anti-money laundering laws. A show cause notice is a formal document alleging wrongdoing and asking companies to explain why disciplinary action should not be taken against them.
The show cause notice gave exchanges two weeks to make a statement, which expired on Friday.
The recently introduced restrictions will prevent Indians from downloading foreign exchange apps. However, those who have previously downloaded the apps can still access them. However, withdrawing cryptocurrencies may pose problems as UPI withdrawals will no longer be possible.
Binance said in an email to users:
Indian stock markets are improving
Indian exchanges were bleeding users to foreign platforms after India implemented a 1% tax cut at source in 2022. Many investors moved to offshore platforms to avoid taxes.
But the latest restrictions are set to level the playing field as Indian investors have already started flocking to local platforms. For example, deposit inflows on wazirx increased by 250% in the four days after the show announcement was published, compared to the previous four days, Bloomberg reported. WazirX was owned by Binance until an unceremonious and bitter split in 2022.
WazirX’s rival coindcx has also gained users since December. 28. Y aggregator-backed local exchange mudrex has gained 30,000 new users since December. 28 according to Bloomberg report.
With access to foreign platforms becoming almost impossible, Indians looking to trade cryptocurrencies will have no option but to use local platforms that are set to see more users and deposit inflows.
#Indians #turn #local #exchanges #restrictions #foreign #platforms
India blocked access to global crypto exchanges including Binance, KuCoin and OKX on January 12. India has created an IP block that prevents Indians from accessing URLs of foreign crypto platforms.
However, according to CryptoSlate’s research, as of the date of publication, it was still possible to access binance, OKX, and kucoin websites via Google Chrome without using a virtual private network (VPN). Although the OKX and Kucoin websites were not accessible, the Binance website could also be accessed through Safari and Mozilla Firefox browsers without any VPN.
The Ministry of Electronics and Information Technology on January 10 asked Apple to restrict Indians’ access to foreign exchange apps. As of the time of writing, both iOS and Android app stores have restricted access to foreign crypto exchange apps to Indians.
The move comes after the Financial Intelligence Unit (FIU) of the Ministry of Finance warned that some international exchanges may be used for money laundering purposes, a government official told the Economic Times.
Foreign exchange restrictions are coming
The Financial Intelligence Unit’s warning comes nearly two weeks after it issued show-cause notices to nine foreign exchanges operating in India. This includes Binance, KuCoin, huobi, OKX, Kraken, gate.io, MEXC Global, bitfinex and Bittrex.
The demonstrative statement alleged that the exchanges were operating illegally in India and did not comply with anti-money laundering laws. A show cause notice is a formal document alleging wrongdoing and asking companies to explain why disciplinary action should not be taken against them.
The show cause notice gave exchanges two weeks to make a statement, which expired on Friday.
The recently introduced restrictions will prevent Indians from downloading foreign exchange apps. However, those who have previously downloaded the apps can still access them. However, withdrawing cryptocurrencies may pose problems as UPI withdrawals will no longer be possible.
Binance said in an email to users:
Binance added that it is “committed to adhering to local regulations and laws.”
Indian stock markets are improving
Indian exchanges were bleeding users to foreign platforms after India implemented a 1% tax cut at source in 2022. Many investors moved to offshore platforms to avoid taxes.
But the latest restrictions are set to level the playing field as Indian investors have already started flocking to local platforms. For example, deposit inflows on wazirx increased by 250% in the four days after the show announcement was published, compared to the previous four days, Bloomberg reported. WazirX was owned by Binance until an unceremonious and bitter split in 2022.
WazirX’s rival coindcx has also gained users since December. 28. Y aggregator-backed local exchange mudrex has gained 30,000 new users since December. 28 according to Bloomberg report.
With access to foreign platforms becoming almost impossible, Indians looking to trade cryptocurrencies will have no option but to use local platforms that are set to see more users and deposit inflows.
#Indians #turn #local #exchanges #restrictions #foreign #platforms