- India’s Financial Intelligence Unit registers 28 Virtual Digital Assets and crypto service providers, complying with the country’s anti-money laundering directives.
- The directive encompasses offshore crypto exchanges catering to India, underlining the necessity for compliance with the Prevention of Money Laundering Act (PMLA).
India’s Financial Intelligence Unit (FIU) has officially recorded the enrollment of 28 Virtual Digital Assets and crypto service providers, marking a significant stride in regulatory compliance within the country’s crypto landscape. This confirmation surfaced during a parliamentary discussion relayed by Pankaj Chaudhary, the Minister of State for Finance.
Adhering to Regulatory Mandates: The FIU Registration
The development aligns with the Indian Finance Ministry’s directive from March, compelling cryptocurrency entities to integrate with the Financial Intelligence Unit. This integration stands as a crucial step in the nation’s concerted efforts to combat money laundering activities. The directive specifically necessitates these firms to strictly abide by the Prevention of Money Laundering Act (PMLA), mandating robust verification protocols such as Know Your Customer (KYC) processes.
A Big development as Crypto in Parliament:
Question: a request was made to provide the list of reporting entities in India🇮🇳 (crypto companies) dealing in VDA (crypto).
Answer: The list of reporting entities dealing in VDA is mentioned below👇 pic.twitter.com/Ej2dqjzgJk
— Kashif Raza (@simplykashif) December 4, 2023
Expanding Regulatory Reach: Offshore Exchange Compliance
An interesting facet of the ministry’s directive is its extension of regulatory guidelines to offshore crypto exchanges catering to the Indian market. This inclusion underscores the gravity of compliance with the PMLA. The ministry has unequivocally highlighted that non-compliance from these offshore entities will result in actionable consequences under the PMLA.
Registered Entities: Domestic Focus
It’s worth noting that while notable exchanges like CoinDCX, WazirX, and CoinSwitch operate within India’s crypto ecosystem, none of the 28 registered entities pertains to offshore companies. This emphasizes a predominantly domestic focus in the initial registration wave.