India Registers 28 Crypto Exchanges with Financial Intelligence Unit
In a recent development, it has been revealed that as many as 28 crypto exchanges or virtual digital asset service providers have registered with the Financial Intelligence Unit–India. These include well-known names such as CoinX, Unocoin, Bitbns, Zebpay, WazirX, Coinswitch, CoinswitchX and Rario.
Registration Confirmation
The information was provided by Pankaj Chaudhary, minister of state for finance to the Lok Sabha on Monday. He confirmed that the guidelines and reporting requirements are applicable to offshore crypto exchanges servicing the Indian market, and that the process of registration for the said VDA SPs has been initiated. This statement was 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.
Action Against Non-Compliance
In addition, Chaudhary stated that appropriate action under the Prevention of Money Laundering Act (PMLA) shall be initiated in cases of non-compliance by offshore platforms.
Regulatory Framework
The registration with FIU-India has come after the Finance Ministry included entities dealing in virtual digital assets (VDAs), crypto exchanges, and intermediaries as “reporting entity” under the PMLA in March this year. As a result, crypto exchanges and intermediaries dealing with VDAs were required to perform KYC of their clients and users of the platform. This move emphasizes the regulatory framework around crypto exchanges in India.
Reporting Requirements
Reporting entities under PMLA are mandated to maintain KYC details and other documents relating to transactions on clients and beneficial owners. This ensures that there is transparency and accountability in the transactions carried out by these exchanges.
The move signals a significant step towards the regulation of crypto exchanges in India, underlining the government’s commitment to bringing greater transparency and compliance within the virtual digital asset space.
With the registration of these exchanges and the implementation of stricter regulations, it is evident that the Indian government is taking proactive measures to combat potential risks associated with money laundering and illicit transactions through the use of virtual digital assets.
I have been a full-time professional writer for over 10 years, and have written for some of the biggest publications in the world. My work revolves around cryptocurrencies and blockchain technology, and I am widely considered to be one of the leading experts in these fields.I have written two books on the subject matter, and my articles have been featured in major news outlets such as The Wall Street Journal, Forbes, and Huffington Post. In addition to writing, I also give talks and seminars on cryptocurrency investing, and am a regular commentator on CNBC, Bloomberg, and other financial news networks.
