India asked 9 cryptocurrency exchanges to comply with PMLA

India has been one of the market in Crypto space in the news because of various reasons and now it is again in the news as the country has issued some show cause notice to 9 exchanges. Currently in India Indian exchanges are operating along with some international exchanges are also providing the services to the Indian users.

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Country implemented attacks mechanism and they introduced TDS which is 1% and this is applicable all on sale transactions. Because of the higher tax percentage majority of the users moved away to the international exchanges from the Indian exchanges and this is why the Indian government has come forward to put a control on that. Technically international exchanges are not liable for the TDS because they are not registered in the country. Now the government wants all these international exchanges to get registered in India so that they can be in a position to manage the taxation part and this is how the government is trying to get the revenue through tax on the cryptocurrencies.

India’s Financial Intelligence Unit (FIU-Ind) has issued show-cause notices to nine offshore virtual digital assets service providers, including Binance, Bitfinex, MEXC Global and Kraken, for non-compliance under the provisions of the Prevention of Money Laundering Act (PMLA).

Total of 9 exchanges are given the show cause notice by the government and this list also includes the leading exchange for example Huobi and Binance etc. now the government has given them the notice and exchanges are expected respond in due course on time and comply with whatever norms are expected by the government. If these exchanges do not follow the compliance then government will block the URL and this way Indian users will not be able to access these exchanges

The update from these exchanges is awaited and let's see how things go further however it's expected that some of the exchanges will try to follow what government asked them. Basically this way the government is trying to bring more international exchange is on the regulation side and we can say its a kind of initiative that will allow these exchanges to operate in the country considering the India is going to be one of the bigger market in crypto space. Again one thing to be noted that the Indian government did not talk about the ban or anything related to this instead government is trying to keep all the options open wherever they see the probability of tax revenue.

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