28 Crypto Exchanges Register with FIU-India
As many as 28 crypto exchanges or virtual digital asset service providers have registered with the Financial Intelligence Unit–India. These include CoinX, Unocoin, Bitbns, Zebpay, WazirX, Coinswitch, CoinswitchX and Rario.
Registration and Guidelines
The information was provided by Pankaj Chaudhary, minister of state for finance to the Lok Sabha on Monday. Chaudhary confirmed that the guidelines and reporting requirements are applicable to offshore crypto exchanges servicing the Indian Market. He mentioned that the process of registration for the virtual digital asset service providers (VDA SPs) has been initiated.
Non-Compliance and Action Under PMLA
Chaudhary also stated that appropriate action under the Prevention of Money Laundering Act (PMLA) shall be initiated in cases of non-compliance by offshore platforms. This indicates the government’s commitment to regulating the crypto market and ensuring compliance with anti-money laundering guidelines and reporting requirements.
Inclusion in PMLA
The registration with FIU-India comes after the Finance Ministry had in March this year included entities dealing in virtual digital assets (VDAs), crypto exchanges, and intermediaries as “reporting entity” under the PMLA. As a result, crypto exchanges and intermediaries dealing with VDAs were required to perform KYC of their clients and users of the platform.
KYC and Reporting Requirements
This move meant that reporting entities under PMLA have to maintain KYC details and other documents relating to transactions on clients and beneficial owners. The government’s involvement in regulating and monitoring the crypto market signals a push towards more transparency and accountability in the industry.
The registration of these 28 crypto exchanges with the FIU-India reflects the growing importance of compliance and regulatory oversight in the cryptocurrency space. As the government continues to implement guidelines and policies, it is expected that the crypto industry in India will become more structured and closely monitored. This development also marks a significant milestone in the ongoing efforts to legitimize and regulate the use of virtual digital assets in the country.
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