Recent actions saw India restricting access to the websites of the world’s largest cryptocurrency exchanges and other virtual digital asset providers, including Binance, KuCoin, and OKX. The report, originating from Economic Times, outlines how these platforms were blocked following government subpoenas issued to explain their operations under India’s anti-money laundering (AML) framework.
The disclosures indicate that authorities had previously sent clarification requests on December 28 of the prior year to a group of prominent exchanges, including Binance, KuCoin, Bittrex, Bitstamp, MEXC Global, Huobi, Kraken, Gate.io, and Bitfinex, seeking details about activities flagged as illegal within Indian markets. The aim, according to regulatory statements, is to ensure those platforms adhere to AML provisions and to curb activities that could undermine financial integrity in the region.
In a subsequent report, the Economic Times noted that the government could extend restrictions to offshore crypto trading apps like Binance if the platforms are found to have violated AML laws. The potential ban signals a broader push to regulate how international exchanges interface with Indian users and to bring offshore operators under stricter supervisory oversight.
Industry voices have framed the blocking move as a measure to level the playing field for domestic exchanges, which are reportedly witnessing a rise in user registrations and trading activity. The tension between global platforms and local rules underscores ongoing regulatory balancing acts as regulators seek to protect investors while sustaining market growth for digital assets within the country.
Earlier in the calendar year, India implemented a 30 percent tax on income generated from cryptocurrency transactions. The levy sparked discontent among investors and led to a notable withdrawal of funds from certain local stock market positions as market participants reassessed the after-tax profitability of digital asset trading and related activities.
Industry observers also noted that India’s enforcement actions at year-end mark a period of heightened attention to how foreign crypto services operate in the country. The regulatory emphasis appears to be part of a broader global trend where authorities are tightening AML standards, increasing reporting requirements, and clarifying tax treatment to reduce illicit financing risks while shaping a sustainable market for digital assets in North America and beyond.
Meanwhile, the isolated reference to Venezuela’s Petro project in related discussions reflects the broader context of state-backed digital assets and the varied approaches nations take toward cryptocurrencies. As regulatory clarity evolves, market participants in North America watch closely how similar issues are addressed by their own policymakers, seeking to harmonize investor protections with innovation and access to global platforms.