KuCoin has become the new international crypto exchange to have complete compliance with India’s Financial Intelligence Unit (FIU). In February 2024, government of India had issue an alert to all crypto players to bring their respective businesses under India’s legally compliance framework to be able to keep their operations up and running.
In an official post on X, KuCoin confirm that it will now begin deducting 1% TDS on each crypto transaction that users trigger via its platform.
🚀 Join us as #KuCoin pioneers compliant crypto trading in #India!
— KuCoin (@kucoincom) April 9, 2024
🇮🇳 Become an affiliate today and be part of the revolution.
#KuCoinAffiliate #KuCoinAffiliateProgram
This tax deduction process on KuCoin for Indian investors and traders will begin on 10th April 2024.
The TDS collect by the exchange will be deposit to India’s financial authorities.
1% tax will be deduct on crypto transactions that include trading activities, selling crypto assets, obtaining crypto assets, depositing them in wallets, purchasing NFTs, and many more.
This TDS deduction rule was implement by the Indian government in 2022.
Ministry of finance want to keep a track of the crypto transactions, most of which are largely anonymous.
Members of India’s crypto community have time and again urge the Indian finance ministry to revise this TDS law.
The community wishes that instead of 1%, government reduce it to 0.01%.
Despite the outcry, government has not introduce any changes to this 1% TDS rule up until now.
As far as KuCoin, it is only natural that the exchange took brisk steps to align its operations with India’s compliance criteria to continue its operations here after facing legal obstacles in the US recently.
In March 2024, US prosecutors charge the exchange and two of its founders for failing to comply with American anti-money laundering rules.
