India registers 28 cryptocurrency companies with National Money Laundering Agency
- India’s Financial Intelligence Unit has registered 28 virtual digital asset and cryptocurrency service providers in compliance with India’s anti-money laundering guidelines.
- The guidelines cover foreign cryptocurrency exchanges targeting India and emphasize the need for compliance with the Prevention of Money Laundering Act (PMLA).
India’s Financial Intelligence Unit (FIU) has officially recorded the registration of 28 virtual digital assets and cryptocurrency service providers, marking significant progress in regulatory compliance within the country’s cryptocurrency landscape. This confirmation emerged during a debate in Parliament delivered by Finance Minister Pankaj Chaudhary.
Compliance with regulatory obligations: FIU registration
The development follows a March directive from the Indian Finance Ministry compelling cryptocurrency companies to integrate with the Financial Intelligence Unit. This integration is an important step in our countries’ joint efforts to combat money laundering activities. This directive specifically requires these companies to strictly comply with anti-money laundering laws. (PMLA), Mandate strong verification protocols, such as know-your-customer (KYC) processes.
Big developments for cryptocurrencies in Congress:
Question: There has been a request to provide a list of reporting entities for Indian 🇮🇳 (cryptocurrency companies) that handle VDA (cryptocurrency).
Answer: A list of reporting agencies covering VDA is provided below👇 pic.twitter.com/Ej2dqjzgJk
— Kashif Raza (@simplykashif) December 4, 2023
Expanding regulatory scope: compliance with overseas exchange regulations
An interesting aspect of the ministry’s guidelines is that it expands regulatory guidelines for offshore cryptocurrency exchanges tailored to the Indian market. This inclusion highlights the importance of compliance with PMLA. The Ministry has clearly emphasized that non-compliance by these extra-territorial entities will result in actionable consequences under PMLA.
Registered corporation: Domestic focus
It is worth noting that there are notable exchanges like CoinDCX. WazirX, CoinSwitch operates within the Indian cryptocurrency ecosystem, and none of its 28 registered entities are associated with offshore entities. This highlights a predominantly domestic focus in the initial wave of registrations.