Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
India’s Financial Intelligence Unit (FIU) has revealed that 49 cryptocurrency exchanges have completed registration under the country’s anti-money laundering framework for the 2024-2025 financial year.
This development represents an important step to strengthen regulatory oversight of the growing digital assets sector in the country.
The International Federation for Indian Standards says 49 cryptocurrency companies now comply with anti-money laundering standards for FY24-25.
According to the latest annual report of the International Consortium of Intelligence Standards, most of the registered platforms are local, with 45 operating. Bag inside India. The remaining four platforms are offshore platforms registered with the International Information Federation as a reporting entity. This allows them to continue serving Indian users within the country’s compliance framework.
Sponsored
Sponsored
In India, cryptocurrencies are legally classified as virtual digital assets (VDA). In addition, the framework identifies the platforms that facilitate their trade as VDA Service Providers (SP VDA).
In 2023, regulators will officially include these entities under the Prevention of Money Laundering Act (PMLA). As a reporting entity, the IU requires VDA officials to file Suspicious Transaction Reports (STRs).
Their duties also include identifying and reporting beneficial ownership of wallets, monitoring fundraising activities such as initial coin offerings or token offerings, and tracking transfers between hosted and non-hosted wallets.
In the report, FIC said its strategic analysis of temporary benefits highlighted ongoing risks Through the digital currency system. While recognizing the sector’s potential for financial innovation and wealth creation, the agency warned that digital assets are being exploited for serious criminal activities. Red flags identified include the use of cryptocurrencies for hawala transactions, illegal gambling and sophisticated fraud schemes.
“And with However, VDAs and VDA SPs have potential risks from money laundering and terrorist financing, due to their global reach, their ability to settle quickly, their ability to perform peer-to-peer transactions, and the potential for increased anonymity and obscuration of transaction flows and counterparties.
The report also revealed that the association imposed fines totaling ₹28 crore (about $3.1 million) during the 2024-25 financial year on non-compliant cryptocurrency exchanges. In October, the entity sent Also regulatory notices At 25 cryptocurrency exchanges, including BingX, LBank, CoinW and CEX. IO, and Poloniex, for not complying with the country’s anti-money laundering rules.
As the crackdown continues, several major global exchanges have resumed operations in the Indian market. Pipit is back To the village After completing local registration requirements and paying a $1 million fine.
Binance is also back To India in 2024 After paying a fine of $2.2 million. In December, Coinbase appealed User integration process With plans to introduce a paper entry ramp in 2026.
In parallel with the supervision of the stock exchanges, The authorities have stepped up their efforts Against fraud related to cryptocurrencies. Recent enforcement actions have dismantled several scams, including a decades-old operation Fooled investors Through Ponzi schemes that promise high returns.
