India to Close 9 Crypto Exchanges Including Binance – How will this affect you?

India bans 9 overseas crypto exchanges. How will this affect live casino players in India? What are the alternatives for live casino players? (Photo by Ewan Kennedy on Unsplash)

In the crypto work, it isn’t just a booming bull market that captures the attention of live casino players who gamble using crypto.

Over in India, news coming out of the country confirms that 9 major cryptocurrency exchanges are heading towards a complete IP ban.

Who should pay attention to this latest crypto news from India?

Suppose you are a live casino player using cryptocurrency to play at any of the casinos on our Indian live casino page or any casino that offers live games that accept crypto. In that case, this news may apply to you.

If your crypto holdings are currently with Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, or Bitfinex, you will need to seek alternative options.

Can you still use crypto to gamble from India?

Yes. As per the information below, a source from the India Today news outlet published the story ‘India to ban URLs of 9 crypto exchanges‘. This is not a blanket ban on cryptocurrency but on 9 companies.

What is the solution or are there alternatives? Find a crypto exchange operated by a company in India. WazirX, CoinDCX and ZebPay are all still able to operate in India. eToro is another option for long term investors, but it is not a platform for live casino players, this is simply for investors, and the platform is not great when it comes to spreads.

Rising Local Tide: India’s Crypto Crackdown Rekindles Domestic Exchange Dominance

The Financial Intelligence Unit’s recent decision to issue compliance notices to nine overseas cryptocurrency trading platforms and request the IT ministry to block their websites for not following regulations is expected to level the playing field for Indian crypto exchanges, according to industry experts.

This move could lead to a resurgence for Indian crypto trading platforms, as many investors who had shifted to foreign exchanges to avoid taxes may return to local ones. “The major impact will be on trading volumes on foreign crypto platforms, and we could see significant trading activity move back to Indian exchanges that comply with FIU norms,” said Shivam Thakral, CEO of BuyUcoin, one of India’s longest-running crypto exchanges.

After the 30% tax on profits, 1% tax deducted at source, and no offset for losses announced in India’s 2022 budget, domestic centralized crypto exchanges saw a 95%+ drop in volumes in February and March 2022, per a study by Esya Centre, a Delhi technology policy think tank. The study found $3.852 billion in cumulative trading shifted from Indian to foreign platforms between February and October 2022.

“Lots of investor money sits on global exchanges now,” said Vishal Gupta, a Noida-based trader and influencer. “Investors want info on withdrawals, and some are shifting assets to hardware or third-party wallets.” Gupta said anxious investors are flooding him with questions.

The 9 Crypto Platforms Banned from India

Selective Enforcement: India’s Crypto Shift

Industry observers noted that some of the most popular foreign crypto exchanges used by Indian investors—such as OKX, Bybit and BitGet—were not included in the Financial Intelligence Unit’s (FIU) list. Meanwhile, some exchanges not currently in favor or operating under new names were included.

“It seems the government relied on an outdated list for this move. Some widely-used non-KYC exchanges aren’t listed either,” said the CEO of an Indian exchange anonymously. However, the Indian crypto industry believes the FIU action will bolster investor protection.

“Strong regulations ensure transparency, protect consumers, and combat financial crime,” said Sumit Gupta, co-founder of CoinDCX. “This will mitigate risks, safeguard users and investors from potential scams, and cultivate a secure virtual digital asset ecosystem.”

Most Indian VDA exchanges already comply with the Prevention of Money Laundering Act (PMLA) as FIU-registered entities, he added.

Regulatory Compliance: The New Norm in India’s Crypto Sphere

In March 2022, VDAs were brought under the PMLA scope. Any exchange offering VDA services in India must report to and follow this Act, whether an Indian entity or not. 28 VDA exchanges like CoinDCX, CoinSwitch, WazirX and Goittus have already registered with the FIU under the Finance Ministry. Clearly, the nine foreign exchanges have yet to register.

“These overseas platforms likely weren’t complying with Indian law enforcement data requests. This notice makes clear they must register with the FIU and share records when needed,” said Rajagopal Menon, VP at WazirX. “The next step could be getting offshore exchanges to comply with Indian TDS laws for services to Indian residents,” he added.

However, most global exchanges will struggle to meet the strict PMLA guidelines, complicating things for Indian investors who migrated there, industry watchers said. Experts advised India crypto investors should keep assets on a regulated, FIU-compliant platform for better protection. They also said the government should allow time for users to move assets before blocking exchange URLs.

“A calculated approach to blocking foreign crypto sites is needed, as many Indian traders may have assets stored there,” said BuyUcoin’s Thakral. Despite the strict stances by the RBI and Finance Ministry on crypto, India topped Chainalysis’ 2023 Crypto Adoption Index, measuring grassroots adoption globally.Indian exchanges saw rising volumes in recent months, with Bitcoin crossing $40,000 in early December after nearly 1.5 years of crypto winter.

“Finally some good regulatory news, plus rising Bitcoin prices and potential Blackrock ETF seeding could restart momentum in crypto,” said one exchange CEO anonymously.

Manhar Garegrat, India/Global Partnerships Head at asset custody platform Liminal, said oversight of monetary flows is natural for capital-controlled India. “Since these are show cause notices, it will be interesting to see the responses from said exchanges,” he said. “This helps Indian exchanges previously impacted by the regulatory arbitrage allowing foreign exchanges to operate sans compliance.”

Want to learn more about crypto gambling? Take a look at the cryptocurrency guide for live casino. The same principles apply to using cryptocurrency to gamble at crypto casinos whether you are in India or any other country whereby gambling using Bitcoin and other crypto is a viable option.