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Websites of Binance, Kucoin blocked in India

Binance’s Customer Support also confirmed the development on X, saying, “We are aware of an IP block affecting a number of crypto firms, including Binance…reports Asian Lite News

The websites of some top global cryptocurrency exchanges like Binance, Kucoin, OKX, among others, were blocked in India on January 12.

This comes after the government sent show-cause notices to these crypto exchanges for not complying with the country’s money laundering laws.

On December 28 last year, a show-cause notice was sent to Binance, Kucoin, Houbi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex for operating illegally in India. The notice was issued because these companies failed to register and follow local tax rules, reports Moneycontrol.

As a result, the finance ministry directed the information technology ministry to block their URLs.

Binance’s Customer Support also confirmed the development on X, saying, “We are aware of an IP block affecting a number of crypto firms, including Binance. This only impacts users who attempt to access the Indian iOS app store or the Binance website from India. Existing users who already have the Binance app are not affected.”

“We remain committed to the adherence of local regulations and laws and we are dedicated to maintaining active communication with regulators to ensure user protection and the development of a healthy Web3 industry,” it added.

Earlier this week, Apple removed some global cryptocurrency exchanges, including Binance and Kucoin from its App Store in India.

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Customers withdrew $1.14 bn from Binance

This would differentiate it from FTX, which got into trouble by lending customer funds to its sibling trading firm Alameda Research, reports South China Morning Post…reports Asian Lite News

Amid the FTX collapse saga, customers withdrew $1.14 billion in just 12 hours from leading crypto exchange Binance and according to its CEO, the massive withdrawals were “handled with ease” and “things seem to have stabilised” now.

Customers pulled billions of dollars of funds from the exchange, amid fears about the state of the cryptocurrency industry following the collapse of FTX and arrest of its former CEO, Sam Bankman-Fried (SBF), from the Bahamas by the US authorities.

Changpeng Zhao tweeted that this was “not the highest withdrawals we processed, not even top 5”.

The CEO said deposits are returning to Binance.

“Things seem to have stabilized. Yesterday was not the highest withdrawal we processed, not even top 5. We processed more during LUNA or FTX crashes. Now deposits are coming back in,” he tweeted on Wednesday.

“We saw some withdrawals today (net $1.14b ish). We have seen this before. Some days we have net withdrawals; some days we have net deposits. Business as usual for us. I actually think it is a good idea to ‘stress test withdrawals’ on each CEX on a rotating basis,” he posted.

Since the bankruptcy of FTX, Binance has been seeking to prove it has all of its customers’ reserves.

This would differentiate it from FTX, which got into trouble by lending customer funds to its sibling trading firm Alameda Research, reports South China Morning Post.

“In the wake of recent events, it’s imperative we develop new systems that allow users to access continuous on-chain verification of their assets in custody to regain user trust and once again prove that crypto is more secure and transparent than traditional finance,” the company said in a statement.

FTX filed for bankruptcy last month after its possible merger with leading crypto exchange Binance did not materialise.

Following his arrest in the Bahamas, US authorities have officially charged Bankman-Fried with defrauding equity investors and he faces up to 115 years in prison, if convicted.

The SEC report said that Bankman-Fried promoted FTX as a safe, responsible crypto asset trading platform, specifically mentioning the platform’s sophisticated, automated risk measures to the investors.

However, the complaint claims Bankman-Fried allegedly orchestrated a years-long fraud to conceal from FTX’s investors.

“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” SEC Chair Gary Gensler had said in a statement.

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