Gate.io and Other Crypto Exchanges Face Regulatory Challenges in India Amid Compliance Issues

The Indian government has blocked access to the website of Gate.io, a prominent cryptocurrency exchange, under the orders of the Ministry of Electronics and Information Technology as per the IT Act, 2000. This sudden restriction has left many users unable to access their funds or conduct transactions, contributing to widespread confusion among traders. This move is part of a broader regulatory clampdown on several international crypto exchanges in India, including previous instances involving Bitfinex and Kraken for their non-compliance with local laws like the Prevention of Money Laundering Act. Exchanges facing such bans are required to pay overdue taxes and adhere to stricter regulations such as KYC norms to resume operations. While exchanges like Binance have managed to realign with local regulations after paying fines, and are in the process of unblocking more services, others are still facing hearings with the Financial Intelligence Unit. The overall regulatory stance in India remains cautious, focusing on risk management and accountability over immediate legislation, thus presenting significant operational challenges for exchanges and affecting accessibility for Indian crypto traders.