Indian authorities have refused to lift restrictions on the online resources of cryptocurrency exchange Binance. According to the Economic Times, the government insists that the company fully adheres to the Prevention of Money Laundering Act (PMLA).
The exchange is said to be in talks with the country's authorities. The company has expressed its willingness to fulfil its #tax obligations and pay fines, asking for the restrictions to be lifted while it carries out the necessary processes under the aforementioned law.
However, as the media noted, the Indian government refused to make any concessions or provide the company with additional time to adapt. The authorities will lift the restrictions only after the company fully complies with the relevant #laws, the article said.
Unnamed sources revealed that Indian regulators are also working with banks to work out measures to restrict traders who use virtual private networks (VPNs) to bypass restrictions on Binance resources and continue their operations.
Members of the media believe that around 4,000 "high-profile investors" in India are using this method of operation. These investors do not want to move their assets to domestic exchanges and prefer to keep their funds in Binance accounts, the journalists claim.
An unnamed government official emphasised the importance of complying with the PMLA. He said that discussions on reopening exchanges in India will take place only after the government is satisfied with the responses received from the Financial Intelligence Unit.
In December 2023, India accused nine cryptocurrency exchanges, including Binance, of operating without proper registration in the country. It was subsequently learnt that the apps of these companies are no longer available on the #Google and #Apple app store. However, users who had previously downloaded the software were still able to use the services without any restrictions.
It is worth noting that #Binance also faced pressure from regulators in its attempt to re-enter the UK market.
