28 Crypto Firms Register with Indian Government
The Indian Ministry of Finance has revealed that there are currently 28 crypto service providers registered with the country’s Financial Intelligence Unit. This information was provided in response to a question asked in Lok Sabha, the lower house of India’s parliament.
The parliament member inquired about the registered entities following the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) guidelines for reporting entities that offer services related to virtual digital assets.
In response, Minister of State Pankaj Chaudhary shared a list of 28 Virtual Digital Assets Service Providers (VDA SPs) registered with India’s FIU. Among them are well-known platforms such as Coindcx, Unocoin, Giottus, Bitbns, Zebpay, and Wazirx.
Anti-Money Laundering Guidelines Apply to Offshore Exchanges
The Ministry of Finance clarified that the AML and reporting requirements also extend to offshore cryptocurrency exchanges catering to the Indian market. This response confirms that these guidelines apply to digital asset service providers regardless of their location.
The process of registration for VDA SPs has already begun, and non-compliance by offshore platforms will result in appropriate action being taken under the Prevention of Money Laundering Act (PMLA).
Hot Take: Indian Government Takes Steps to Regulate Crypto
The Indian government’s registration of 28 crypto service providers and its clarification on the applicability of anti-money laundering guidelines to offshore exchanges indicate a growing effort to regulate the cryptocurrency industry in the country. By including both domestic and foreign platforms, the government aims to ensure compliance and prevent illicit activities such as money laundering and terrorism financing. This move brings more transparency and legitimacy to the Indian crypto market, offering protection to investors and establishing a framework for the industry’s growth. It remains to be seen how these regulations will evolve and if they will attract more participants to the Indian crypto space.
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