FIU-IND Cracks Down on Unregistered Crypto Platforms Operating in India
The Financial Intelligence Unit-India (FIU-IND) has issued notices to 15 virtual digital asset service providers for non-compliance with India's anti-money laundering requirements. The entities, including Weex International Exchange LTD and Blofin, were found operating illegally in India without meeting the applicable provisions of the Prevention of Money Laundering Act.
The action follows the implementation of a new framework in March 2023 that brought virtual digital asset service providers under India's Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) framework. VDA SPs operating in India, whether offshore or onshore, are required to register with FIU-IND as reporting entities for specified virtual asset activities.
Registration obligations apply to both offshore and domestic crypto platforms operating in India, and registered entities must meet reporting, record-keeping, and other obligations under the PMLA. The government has also cautioned the public that crypto products and non-fungible tokens (NFTs) remain unregulated and can carry high risks.