"That's why it's hard to register, then it's going to start blocking operations."
Recently the entire cryptocurrency market was shocked by the news of India's Financial Intelligence Unit (FIU) seeking to ban nine digital asset exchanges including Binance and Kraken from continuing their operations.
India's FIU, which regulates suspicious financial activities, said all the crypto exchanges had been operating illegally in its country after failing to register with their agency, including complying with anti-money laundering and anti-terrorist financing regulations.
The string, FIU requested that the websites Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex be blocked in India by the country's Ministry of Electronics and Information Technology.
According to the FIU, Virtual Digital Asset Service Providers (VDA SPs) operating in India are required to be registered with the FIU as a Reporting Entity and comply with a set of obligations as mandated under the Prevention of Money Laundering Act (PMLA) 2002.
It is true that 31 virtual digital asset service providers are now registered with the FIU, but a large number of Indian users choose to use unregistered crypto exchanges, prompting the regulator to act in this way.
Last month, the United States (US) government fined Binance $4.3 billion for failing to comply with anti-money laundering laws, including requiring the crypto exchange to agree to cease operations in the country.
The streak, Binance founder Changpeng Zhao (CZ) agreed as part of the settlement to resign as CEO and plead guilty to criminal violations of US anti-money laundering laws.
