In a move to regulate the cryptocurrency sector, India’s Financial Intelligence Unit (FIU) has issued show cause notices to nine offshore Virtual Digital Assets (VDA) service providers for allegedly violating the Prevention of Money Laundering Act (PMLA) of 2002. The targeted firms, located in Seychelles, Cayman Islands, and Switzerland, include popular platforms such as Kucoin, Huobi, Kraken, and Bitfinex. The FIU-India has emphasized that compliance with the law is based on the nature of the activity, not physical presence in India.
Earlier this year, India’s Finance Ministry mandated that cryptocurrency businesses register with the FIU and adhere to the PMLA, which includes implementing verification processes like Know Your Customer (KYC). While 31 cryptocurrency firms have complied with the registration requirements, the FIU has noted that several offshore entities serving Indian users have failed to register and fall under the Anti Money Laundering (AML) and Counter Financing of Terrorism (CFT) framework.
The Indian government’s actions highlight its commitment to bringing cryptocurrency activities under regulatory frameworks, particularly in the context of preventing money laundering and ensuring the security of financial transactions in the country. The evolving landscape of cryptocurrency regulations in India will continue to be closely monitored as authorities strive to strike a balance between innovation and financial security.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇸🇨 🇰🇾 🇨🇠🇮🇳 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Bitstamp, Bittrex, Kucoin, Huobi, MEXC Global, Kraken, Bitfinex, Gate.io |
| Currencies | None |
| Securities | None |
