Demonetisation moment for crypto exchanges? What does it mean for you?

economictimes.indiatimes.com:

Financial Intelligence Unit (FIU) to nine offshore virtual digital asset service providers, including Binance, Bitfinex, MEXC Global, and Kraken, for non-compliance under the Prevention of Money Laundering Act (PMLA) likely holds more significance than it might initially seem. It could have implications for anyone holding crypto assets.

It is akin to a ‘demonetisation moment’ for the local crypto exchanges who had committed to abide by the country’s laws which the authorities have been pressing for quite some time. The crypto assets held by these non-FIU compliant exchanges are likely to witness a shift towards exchanges that adhere to FIU compliance.

At the forefront of this shift are entities like Mudrex which is registered with the FIU in India and as a Virtual Asset Service Provider (VASP) in the EU. It is likely to experience a strong influx of crypto assets, thanks to its seamless process that allows investors to transfer assets to Mudrex wallet in less than 15 minutes.

One school of thought suggests that these nine exchanges, not wanting to lose access to the Indian markets, may strive to become FIU compliant following the notice that they have received.

However, even if they were to comply, the movement of crypto assets to FIU compliant exchanges seems inevitable for a simple reason. For any investor holding crypto assets or for that matter any financial asset, the trust that their assets are safe and accessible at any point of time is of utmost importance. It is similar to the faith that a person has in a bank.