28 Crypto Exchanges Register with Financial Intelligence Unit–India
In a move to regulate the cryptocurrency market, as many as 28 crypto exchanges or virtual digital asset service providers (VDASPs) have registered with the Financial Intelligence Unit–India (FIU-India). The registration comes after the Finance Ministry’s directive in March this year, which included entities dealing in virtual digital assets (VDAs), crypto exchanges and intermediaries as “reporting entities” under the Prevention of Money Laundering Act (PMLA).
Registration and Compliance
Pankaj Chaudhary, minister of state for finance, confirmed the information to the Lok Sabha on Monday. He revealed that CoinX, Unocoin, Bitbns, Zebpay, WazirX, Coinswitch, CoinswitchX, and Rario are among the crypto exchanges that have registered with FIU-India.
In response to a question by Lok Sabha MP Lavu Sri Krishna Devarayalu on whether the anti-money laundering guidelines and reporting requirements are applicable to offshore crypto exchanges servicing the Indian market, Chaudhary stated, “Yes, the guidelines and reporting requirements are applicable to offshore crypto exchanges servicing the Indian Market. The process of registration for the said VDASPs has been initiated.”
Furthermore, Chaudhary emphasized that appropriate action under PMLA shall be initiated in cases of non-compliance by offshore platforms. The move to regulate the crypto market in India is in line with global efforts to combat money laundering and illicit financial activities.
Ethical Business Practices
Under the PMLA, reporting entities are required to maintain KYC details and other documents relating to transactions on clients and beneficial owners. This means that crypto exchanges and intermediaries dealing with VDAs are obligated to perform KYC of their clients and users of the platform. The stringent measures aim to ensure transparency and ethical business practices in the cryptocurrency market.
The registration with FIU-India is a significant step towards formalizing the crypto market in India. It will not only bring accountability and transparency to the trading of virtual digital assets but also boost investor confidence in the burgeoning market. As cryptocurrency gains popularity globally, the need for regulatory oversight and compliance measures has become increasingly crucial.
As more crypto exchanges and VDASPs comply with the registration and reporting requirements, it is expected that the Indian crypto market will mature and evolve in line with international standards. The move is a positive step towards establishing a robust and secure framework for the cryptocurrency industry, laying the foundation for sustainable growth and development in the foreseeable future.
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