India's FIU slaps show cause notices on Binance, Kucoin & 7 offshore crypto exchanges for flouting compliance.

Exchanges accused of illegal crypto operations in India without registering under anti-money laundering law PMLA.

FIU asserts significant business done by offshore platforms without Indian regulatory compliance. 

Authority invokes extra-territorial powers under PMLA demanding compliance irrespective of jurisdiction. 

Notices give exchanges a chance to explain lapses before punitive action like potential URL blocking. 

Crackdown aims to extend AML/KYC coverage to offshore entities serving Indian crypto users. 

It can impact trading volumes and platform preferences if exchanges are blocked for non-compliance. 

While repercussions are uncertain, India signals era of unchecked offshore crypto operations is ending. 

Prudent regulation can place crypto sector on sustainable trajectory. Exchanges must collaborate with authority. 

Compliance, transparency and reciprocal coordination vital for India to tap crypto's promise responsibly.