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Govt Issues PMLA Notices to 9 Foreign Crypto Firms Like Binance, Seeks to Block Access

The companies have been accused of operating illegally in India without following anti-money laundering norms

The central government continues its tough stance on cryptocurrencies and related firms. In a new development, the Financial Intelligence Unit (FIU) has issued show cause notices to nine overseas cryptocurrency companies under the Prevention of Money Laundering Act (PMLA).

The FIU said these companies are functioning illegally in India without adhering to PMLA regulations. It has suggested the Ministry of Electronics and IT block access to the websites and platforms of these firms.

The companies that have received notices include major players like Binance, KuCoin, Huobi, Kraken, Bittrex, Bitfinex,, MEXC Global and Bitstamp. The FIU said its action is based on the companies’ Indian operations and not their physical presence.

The notices did not specify a date for the firms to respond or timeline for potential action. This marks the first time such action has been initiated against crypto companies under PMLA in India.

Earlier in March, the government made it mandatory for all crypto exchanges and platforms operating in India to register with the FIU. Currently, 31 domestic companies are registered, up from 28 earlier this month.

The notices indicate the government’s intent to crack down on unregulated crypto activities seen as illegal or money laundering conduits. The IT Ministry blocking access would deal a blow to such firms’ India business. The government aims to enforce accountability in the crypto space through proactive measures.

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