India’s Ministry of Finance reports 28 crypto platforms register with FIU, announced in Lok Sabha by MoS Finance
28 Crypto Exchanges Register with FIU-India Under New Guidelines
In recent news, it has been reported that 28 crypto exchanges or virtual digital asset service providers have officially registered with the Financial Intelligence Unit–India (FIU-India). This registration comes after the Finance Ministry included entities dealing in virtual digital assets (VDAs), crypto exchanges, and intermediaries as “reporting entities” under the Prevention of Money Laundering Act (PMLA) back in March.
Registration of Crypto Exchanges
The list of registered crypto exchanges includes well-known names such as CoinX, Unocoin, Bitbns, Zebpay, WazirX, Coinswitch, CoinswitchX, and Rario. This move is part of the government’s efforts to regulate the crypto market and ensure compliance with anti-money laundering guidelines and reporting requirements.
Minister of State for Finance, Pankaj Chaudhary, confirmed this information to the Lok Sabha on Monday, stating that the guidelines and reporting requirements are applicable to offshore crypto exchanges servicing the Indian market. As a response to a question by Lok Sabha MP Lavu Sri Krishna Devarayalu, he further stated that appropriate action under PMLA shall be initiated in cases of non-compliance by offshore platforms.
Impact of PMLA Guidelines
Following the Finance Ministry’s inclusion of VDAs, crypto exchanges, and intermediaries as “reporting entities” under the PMLA, these entities are now required to perform KYC of their clients and users of the platform. Additionally, reporting entities under PMLA have to maintain KYC details and other documents relating to transactions on clients and beneficial owners.
The process of registration for the VDA service providers has already been initiated, signaling a new chapter in the regulation and oversight of the cryptocurrency market in India. As the government takes proactive steps to enforce compliance with the PMLA guidelines, it will also play a crucial role in ensuring the legitimacy of transactions and preventing illicit financial activities in the crypto space.
Moving forward, the government has made it clear that appropriate action will be taken against any instances of non-compliance by the registered offshore platforms, demonstrating its commitment to upholding stringent regulatory standards in the evolving landscape of virtual digital assets.
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