Government sends notice to 9 offshore crypto firms for PMLA non-compliance
The companies that have been sent the show causes notices by the FIU include Binance, Bittrex, Kucoin, Huobi, Kraken, Gate.io, Bitstamp, MEXC Global and Bitfinex, all of which are among the top crypto service providers worldwide. The FIU noted that 31 crypto service providers had already registered themselves with the regulatory body, but a number of offshore entities had failed to do so.
Many of these offshore exchanges conduct global operations from tax havens like the Cayman or British Virgin Islands and have been a preferred destination for Indian crypto traders that don’t want to pay the 1per cent tax-deducted at source that is charged on every VDA transaction in India, leading to a bulk of India’s crypto trading volumes to move from domestic exchanges to these platforms.
