Govt may ban offshore crypto trading apps if found guilty of PMLA violations

The Indian government has hinted at further action against offshore cryptocurrency platforms like Binance, potentially culminating in a complete ban on their Indian operations if found guilty of violating money laundering laws. This follows a series of recent developments, including show-cause notices issued by the Finance Ministry and a request to Apple to remove Binance from its App Store.

"A more extensive probe is underway," stated a senior official from the Electronics and Information Technology Ministry, adding that a complete ban could be imposed if platforms like Binance are found to be in breach of more provisions of the Prevention of Money Laundering Act.

This escalation comes after the Financial Intelligence Unit (FIU) sent notices to Binance and eight other virtual asset providers in December, questioning their operations in India and their compliance with anti-money laundering regulations. The FIU also recommended blocking access to these platforms' websites.

The government's actions reflect growing concerns about potential use of cryptocurrency platforms for illegal activities like money laundering and tax evasion. While the industry has seen rapid growth in India, regulators have been grappling with how to effectively regulate it.

The potential ban on Binance, one of the world's largest cryptocurrency exchanges, would be a significant blow to the Indian crypto market. It remains to be seen how the company will respond to the ongoing investigation and the threat of a ban.

• Indian government mulls ban on Binance and other offshore crypto platforms.

• Concerns about money laundering and non-compliance with anti-money laundering regulations.

• Show-cause notices issued by Finance Ministry and request to Apple to remove Binance from App Store.

• FIU investigation and recommendation to block access to platforms' websites.

• Potential ban could be a significant blow to the Indian crypto market.