28 Indian Crypto Platforms Register With Country’s Anti-Money Laundering Department
According to the Minister of State for Finance in India, 28 virtual digital asset service providers have registered with the country’s Financial Intelligence Unit (FIU). This move comes after the government mandated that crypto businesses must register with the FIU and comply with the Prevention of Money Laundering Act. Notable exchanges such as CoinDCX, WaxirX, and CoinSwitch are among the entities that have successfully registered. The registration process includes carrying out verification processes like Know Your Customer (KYC) and maintaining relevant documents related to transactions and clients. The guidelines and reporting requirements also apply to offshore crypto exchanges serving the Indian market, and non-compliant platforms may face action under the PMLA. However, the Indian crypto market still faces challenges in terms of taxation and opposition from the Reserve Bank of India.
Hot Take: Challenges Ahead for Indian Crypto Market
The registration of 28 Indian crypto platforms with the country’s anti-money laundering department is a significant step towards regulating the industry. By mandating KYC processes and reporting requirements, the government aims to protect citizens from potential risks associated with unregulated exchanges. However, challenges remain, particularly in terms of taxation and opposition from regulatory bodies like the Reserve Bank of India. The imposition of taxes on crypto transactions and calls for a cryptocurrency ban create uncertainty for businesses operating in this space. It will be crucial for regulators to strike a balance between oversight and fostering innovation in order to ensure a thriving and secure crypto market in India.
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