India Blocks Access to 15 Offshore Crypto Platforms Over Non-Compliance
India's Financial Intelligence Unit (FIU-IND) has taken action against 15 Virtual Digital Asset Service Providers (VDA SPs) for failing to comply with anti-money laundering regulations. The entities, operating offshore, have been providing services to Indian residents without registering as reporting entities under the Prevention of Money Laundering Act (PMLA).
The regulatory action was taken under Section 13 of the PMLA, and FIU-IND has requested authorities to block access to the websites and applications of these entities. This is in line with Indian statutory provisions that require all crypto entities providing services to Indian residents to comply with national Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) frameworks.
The government brought virtual digital asset providers under the PMLA's ambit in March 2023, covering activities such as crypto-to-fiat exchanges, crypto-to-crypto trading, asset transfers, and wallet administration services. The Ministry of Finance has reiterated that virtual digital assets remain unregulated in India and carry significant financial and security risks for individual investors.