Gate: Fully Operational in India Once Again

The cryptocurrency landscape in India has experienced a significant shift, with Gate returning to full functionality after a prolonged absence. This development, coinciding with India's 78th Independence Day, has been warmly received by the nation's crypto enthusiasts. Let's delve into Gate's journey from restriction to restoration and its implications for India's crypto ecosystem.

A Period of Restriction

In January 2024, the Indian government implemented a ban on Gate and eight other offshore cryptocurrency exchanges. This action was initiated by the Ministry of Electronics and Information Technology (MeitY), following show cause notices issued by the Financial Intelligence Unit (FIU) on December 28, 2023. The ban affected several major players in the crypto space, including Gate.

The notices were served under Section 13 of the Prevention of Money Laundering Act, 2002 (PMLA), with Indian authorities citing illegal operations as the primary concern. Subsequently, the government blocked the URLs of these exchanges, and their applications were removed from app stores.

Compliance with FIU-IND

Gate was not the first to seek registration with the FIU-IND. Earlier in the year, another exchange had announced its registration, paying a substantial penalty to resume operations in India. Their website was unblocked in May, and it was revealed that Gate had also initiated the registration process with the FIU, though a penalty was still pending. Reports later emerged that the FIU had imposed a significant fine on Gate.

While many exchanges sought to maintain their presence in the Indian market, one notable platform announced its exit from India in April 2024, despite not being among the nine exchanges initially served with notices.

Gate's Return to India

As July came to a close, reports began circulating about Gate's URL becoming accessible in various Indian cities. By August 14, the day before India's Independence Day, Gate's website was fully accessible across the country. The mobile applications soon followed, appearing on both Android and iOS platforms early on August 15. Gate officially confirmed its registration with Indian authorities and its return to the Indian market through a blog post.

Statement from Gate's Leadership

Gate's CEO expressed enthusiasm about the company's registration with FIU-IND on social media. Extending Independence Day wishes to India, he highlighted this as a significant regulatory milestone for the exchange.

Looking Ahead

With Gate now fully operational in India, it will implement the 1% TDS on crypto transactions as per Section 194S of the IT Act, effective since July 1, 2022. The registration with FIU also mandates that Gate report any suspicious transactions to the authorities. Indian users may need to re-complete their KYC procedures in accordance with Indian Anti-Money Laundering laws.

This development marks a step forward in solidifying India's position in the global crypto landscape. However, the crypto community continues to express concerns about the 30% tax on cryptocurrency transactions in the country.