28 crypto firms register operations with India’s Financial Intelligence Unit: Details

WazirX, CoinDCX and CoinSwitch are among the 28 crypto firms that have registered their operations with the Indian Financial Intelligence Unit (FIU). This registration is important and was first made mandatory to be completed by firms dealing in virtual digital assets in March this year. In India, entities dealing in crypto assets are classified as ‘reporting entities’ under the Prevention of Money Laundering Act (PMLA). Its purpose is to ensure that cryptocurrencies do not pose any serious threat to the investor community.

In a recent revelation in Parliament, Minister of State for Finance Pankaj Chaudhary confirmed that 28 crypto-related companies have officially listed themselves with Indian authorities in the last two years. Unocoin, Giotas, Zebpay, Mudrex, Byucoin, Rario and Bitbns are the other crypto firms that have made it to the list, screenshots of which are now surfacing on social media.

Commenting on the development, R Venkatesh, Senior VP and Head of Public Policy, CoinSwitch, said, “This is pleasing and puts to rest any confusion (intended or unintended) regarding the applicability of India’s PMLA provisions to foreign VDA trading platforms. Is.”

In March this year, India’s Finance Ministry said that entities dealing in virtual digital assets would be considered ‘reporting entities’ under the PMLA.

Ashish Singhal, Co-Founder and CEO of CoinSwitch, while replying to a thread on X, explained what it means to be a ‘reporting entity’ under PMLA guidelines.

“As a reporting entity of FIU-IND, VASPs like CoinSwitch fall under PMLA guidelines – similar to banks, stockbrokers, etc. The best practices adopted by these financial institutions on transaction monitoring now apply to crypto as well. Earlier there was no clarity on this. Now, India has a proper framework for crypto too…more transparency,” Singhal said.

Under anti-money laundering legislation, reporting entities are required to maintain KYC details or records of documents certifying the identity of their customers and beneficial owners, as well as account files and business correspondence relating to their customers.

“Indian domiciled REs, who are already struggling with the debilitating tax treatment for VDAs, would like the current discriminatory consequences of the PMLA notification to end soon, and we are encouraged by the Minister’s response that ‘in cases where appropriate under PMLA Action will be initiated against non-compliance by offshore platforms,” Venkatesh said.

At present, no offshore company like Binance and Coinbase has made it to the FIU’s crypto list yet. However, they need to register with the Indian authorities to avoid legal consequences.

During India’s G20 presidency, India worked with global financial institutions on creating legislation to regulate the crypto sector internationally. While Sitharaman said the G20 roadmap on crypto has been adopted, more clarity is expected when Brazil takes over the G20 presidency.


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(TagstoTranslate)Crypto Companies India Financial Intelligence Unit FIU Cryptocurrencies(T)India(T)Unocoin(T)Giotus(T)Zebpay(T)Mudrex(T)Biocoin(T)Rario(T)BitBNS

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