Global crypto exchange BTSE has been directed to halt its services in India after failing to comply with regulations set by India’s Financial Intelligence Unit (FIU).
The FIU, acting under the Anti Money Laundering/Counter Financing of Terrorism (AML-CFT) framework established by the Prevention of Money Laundering Act (PMLA) in 2002, emphasized that despite including Virtual Digital Assets Service Providers (VDAs) within the AML-CFT framework in March 2023, these offshore entities failed to register and adhere to the prescribed norms.
This decisive action underscores the mandatory nature of compliance with Indian regulations for all entities offering crypto services to Indian users, regardless of their physical presence.
Understanding India’s New Crypto Rules
India is strengthening its regulatory framework for crypto trading through the Financial Intelligence Unit (FIU), which operates under the Prevention of Money Laundering Act (PMLA) established in 2002. The government’s initiative aims to protect traders and prevent illegal activities by bringing Virtual Digital Assets Service Providers under the Anti-Money Laundering/Counter-Financing of Terrorism (AML-CFT) framework. Several international exchanges have received compliance notices from the FIU, mandating them to register and adhere to Indian laws.
The regulatory requirements are clear and structured:
- Exchanges must register with Indian authorities under the PMLA framework
- Platforms need to implement proper KYC procedures for user verification
- They must monitor and report suspicious transactions to the FIU
- Maintaining comprehensive records of all transactions is mandatory
These measures, grounded in the PMLA’s established legal framework, are designed to create a safer and more transparent crypto trading environment for all participants in India, while combating financial crimes through systematic oversight..
What This Means For Indian Crypto Traders
If you used BTSE, you need to find a new platform. This might feel worrying, but it’s actually a good chance to find a better exchange. Many traders are now looking for platforms that follow all Indian rules.
The good news is that there are many safe options available. This change helps push the market toward better and safer trading platforms.
Finding The Right Platform
When choosing a new exchange, look for these things:
- Proper registration with Indian authorities
- Strong security features
- Good customer support
- Easy-to-use platform
- Clear fee structure
Many traders are finding that platforms like BTZO offer what they need. These platforms follow Indian rules while providing great trading features.
A Positive Change For India’s Crypto Future
This is actually good news for India’s crypto market. When exchanges follow the rules, everyone benefits. Traders get better protection. The market becomes more stable. More people feel confident to join crypto trading.
India is building a strong and safe crypto environment. These changes will help crypto grow in a healthy way in the country.
Ready to trade with confidence? Try BTZO – a secure platform that follows all Indian regulations while offering great trading features.