Crypto Exchanges Struggle in India: Regulatory Hurdles and User Restrictions

Regulatory Freeze

India’s once-booming crypto market is facing a regulatory chill. Exchanges are struggling to operate due to restrictions, fines, and even exits.

Binance’s Troubles

Binance, a global crypto giant, faced accusations of violating KYC norms. This led to a suspension of services and a $2.25 million fine. Binance has since collaborated with Indian authorities to recover stolen funds, but it remains unclear if this will appease regulators.

Exodus and Adaptation

Some exchanges, like OKX, have left India due to regulatory challenges. Others, like Kucoin, have adapted by becoming fully compliant. Kraken and Bitfinex now face restricted services for non-compliance.

Bitget’s Compliance Quest

Bitget, a new entrant, is facing user restrictions in India. The exchange has pledged to navigate the regulatory maze and ensure compliance.

India’s Crypto Future

India’s crypto stance reflects a global trend of balancing innovation with risk mitigation. The 30% tax on crypto income aims to integrate crypto into the financial system. The current regulatory environment may be challenging, but it could lead to a more responsible crypto market in India in the long run.