Indian crypto exchanges are promising hassle free transfer for users who want to transfer their crypto assets from foreign crypto exchanges after the Financial Intelligence-led IP ban on off-shore crypto exchanges like Binance, OKX and several others.
A number of Indian crypto exchanges have come up with lucrative fee waiver deals for users who have their funds stuck on banned foreign crypto exchanges. First, CoinDCX, one of the largest Indian crypto exchanges by trading volume, announced that it had set aside $1 million to help users transfer their assets on to complaint crypto exchanges.
Later, another Indian crypto exchange BuyUcoin announced zero fee transfer for users from off-shore exchnages in light of the FIU ban. A spokesperson from the exchange told Cointelegraph that they believe FIU’s move is a correct step towards investor protection and also towards enforcing capital flight rules and regulations on foreign exchange entities.
The FIU, an arm of the Indian Finance Ministry issued a notice of non compliance to Binance, Huobi, Kraken, Gate.io, KuCoin, Bitstamp, MEXC Global, Bittrex and Bitfinex for illegally operating in India on Dec. 28, 2023. The FIU gave a one week window for crypto exchanges to respond to the notice and advised the IT department to block the URLs of mentioned foreign crypto exchanges in case they fail to comply.
On Jan. 10 nearly two weeks after the FIU notice Apple’s Indian app store blocked all foreign crypto exchanges, however, it was still available on the Andiod app store. Within a week, these foreign crypto exchanges were also blocked from Google’s app store. This created a sense of panic among Indian users who had flocked to foreign crypto exchanges like Binance to evade a hafty 30% crypto tax.
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Many Indian crypto influencers were seen propagating alternate ways for users to access the banned platforms in India including the use of virtual private networks (VPNs). However, exchange platforms such as BuyUcoin advised against such moves claiming there are major “negative consequences that could arise from Indian users going for new URLs as they could end up losing all their crypto assets or money due to phishing sites and other online scams.”
Among the banned foreign crypto exchanges, the OKX exchange reportedly started asking Indian users to update their personal information to comply with local regulations, indicating a move toward FIU compliance.
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