FIU Notice is Good for Indian Exchanges
Hello and Namaste Everyone,
Recently we have seen how international crypto exchanges were issued show cause natives by the FIU. Those who do not know what this FIU is let me explain in simple words. The Financial Intelligence Unit is a government body that manages the compliance for companies dealing in finance-related stuff. Multiple bodies in India deal in different sectors for example RBI is for the banks and other financial institutions and it controls their funding. FIU is a government body that is supposed to ensure that all these authorities comply with PMLA and Indian norms. I've even heard the name of this government authority in the last few months and I'm not sure whether this was created this year or maybe long back. Mostly RBI is for the bank and SEBI is for the stock market-related regulations and guidelines.
Recently the notices have been served to nine international exchanges by this government authority for giving the show cause notice as to why they are not compliant with Indian regulations. This happened when the Indian exchanges complained that their volumes had dropped because the majority of users had moved out to the offshore exchanges. I want to mention here that after the tax application in India, many users started trading in international exchanges because of the TDS complexity. Because of this transition, the Indian exchanges had to deal with a bigger drop in trading volume which of course impacted their revenue.
Now after this news when the government has also asked these crypto exchanges to get complied else their URL will be banned in the country. This is a serious issue because these exchanges do not follow the guidelines. Their URLs will be banned and as a result, users in India will not be able to access them. I'm not sure if the VPN can be one of the options to access even after the URL band because I never used it so I do not know how it works.
After this, the impact can be seen on the Indian exchanges. Even some Indian users raise the concern on Twitter that most of the exchanges do not offer crypto withdrawal. This is certainly one of the problems and now some exchanges have started this function. This is a really good step taken by the Indian exchanges and now these exchanges are getting more deposits coming into their wallet. It is good for the Indian exchanges because they are getting more people getting active and also getting bigger deposits coming into their wallets. I hope these Indian exchanges can serve the users as per their expectations and hopefully, this will also help them have good volume especially when the market is turning out to be in better shape.
Indian exchanges follow all the taxation rules so if you are from India and dealing with an Indian exchange then you need not worry. I think it is better and highly recommended to follow the tax policies to avoid any issues later because crypto is here to stay and following fair practice is always the best way forward. I am not a trader and I rarely do so it is not an important thing whether I am active on Indian or international exchanges but if Indian exchanges can provide good services then probably I will prefer those to avoid any problems in the future. For now, it's good to see that Indian exchanges are getting things back on the right ground and they are also making things better for the users. Just hope that they are ensuring that in case of any issue they offer the services that international exchanges do.
Thank you so much
Stay Safe
Posted Using InLeo Alpha