Thomas Daniels
The Financial Intelligence Unit of India has formally recognized 28 crypto and virtual digital asset service providers, as announced by Pankaj Chaudhary, the Minister of State for Finance, during a session in the parliament.
This development is in line with the guidelines set by the Indian Finance Ministry in March, which required cryptocurrency businesses to comply with the Financial Intelligence Unit’s standards. These standards are crucial in the fight against money laundering. The businesses must now follow the Prevention of Money Laundering Act (PMLA), which includes rigorous identity verification processes such as Know Your Customer (KYC) protocols.
An important aspect of the ministry’s directive is the inclusion of foreign cryptocurrency exchanges that serve Indian customers. These exchanges must adhere to the same regulations, and failure to comply will lead to consequences under the PMLA.
Although major exchanges like CoinDCX, WazirX, and CoinSwitch have been registered, none of the 28 entities that have completed registration are based outside of India.
