India’s Crypto Crackdown on Crypto Platforms, Banning Binance, KuCoin, and OKEx – RBI Governor Issues Warning Amid ₹3000 Crore Annual Loss
Crypto currency in India
While Bitcoin exchange-traded funds (ETFs) have been approved in the United States, the mood of the Indian government is quite different. The government has finally taken strict action against cryptocurrency exchanges operating from abroad. Websites of crypto platforms like Binance, KuCoin, and OKEx have been banned in India. The government alleges that these crypto platforms are operating in India without adhering to anti-money laundering laws, causing an annual loss of around ₹3000 crores to the Indian government. Reserve Bank of India (RBI) Governor Shaktikanta Das signaled such action on Thursday.
Governor Das expresses intolerance for crypto mania
RBI Governor Shaktikanta Das stated that there has been no change in the central bank’s stance on cryptocurrency. Whatever is happening with cryptocurrencies is of no concern to the Central Bank. Those who delve into crypto should be prepared to face risks. Governor Das cited the Tulip Mania as an example, stating that he doesn’t think the world and emerging markets can tolerate crypto mania. Tulip Mania saw a tremendous surge in the prices of Dutch tulips in the 17th century, remembered as one of the worst speculative bubbles in history. However, he remained positive about blockchain technology, the same technology that underpins cryptocurrencies.
Notice from the Finance Ministry in December 2023
According to a report from Economic Times, in December 2023, the Financial Intelligence Unit (FIU) of the Finance Ministry issued notices to these platforms. It also directed to block their URLs from the Ministry of Information Technology. The Finance Ministry has taken action against not only Binance, KuCoin, and OKEx but also Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. These crypto platforms were already removed from the Apple App Store, and soon their Android versions will cease to function.
Websites and apps cease operations
Binance announced on the social media platform X that its website and app are no longer operational in India. However, the company assured investors that their funds are secure. Binance stated its commitment to complying with Indian laws and maintaining continuous communication with regulators for the industry’s development.
Government incurs a loss of ₹3000 crores annually
Edul Patel, CEO of Indian crypto exchange Mudrex, revealed that after receiving notices from FIU, they advised investors to transfer their funds. According to research from the Esya Centre, the Indian government incurs an annual tax loss of around ₹3000 crores due to global cryptocurrency exchanges because none of them are registered companies in India.
