In a recent disclosure made by Minister of State for Finance Pankaj Chaudhary to India’s Parliament, a substantive cohort of 28 Virtual Digital Assets (VDA) or crypto service providers have undergone the registration process with the nation’s Financial Intelligence Unit (FIU). This development, stemming from the directives issued by India’s Finance Ministry back in March, mandated the inclusion of crypto entities within the regulatory purview of the Prevention of Money Laundering Act (PMLA). Consequently, these crypto businesses are now bound by legal obligations to adhere to stringent verification procedures, notably including the implementation of Know Your Customer (KYC) measures.
Expanding on this, the Ministry’s response underscored the comprehensive applicability of the prescribed guidelines and reporting requisites, specifically extending them to encompass offshore crypto exchanges catering to the Indian market. The Ministry emphasized a robust stance, cautioning against non-compliance and affirming the imposition of consequential actions under PMLA targeting offshore platforms failing to meet the specified criteria.
It’s worth noting that while prominent exchanges such as CoinDCX, WaxirX, and CoinSwitch have successfully completed registration with the FIU, an interesting observation arises: among the 28 registered entities, none are identified as offshore companies. This dichotomy draws attention to the compliance landscape and the absence of offshore entities among the enlisted roster of registered crypto service providers.
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