28 VDA Service Providers in India Register with FIU-IND
India has given the green light to 28 virtual digital asset (VDA) service providers, including well-known exchanges like WazirX, Coin DCX, and Coinswitch. These entities have officially registered themselves with the Financial Intelligence Unit-India (FIU-IND) after the government designated them as “reporting entities” under the Prevention of Money Laundering Act (PMLA).
Offshore Crypto Exchanges Comply with Indian Guidelines
The guidelines and reporting requirements for VDAs are applicable to offshore crypto exchanges serving the Indian market. This move aims to strengthen future crypto regulations in India and protect citizens from exchange collapses. The registration process for offshore VDA service providers demonstrates a strong regulatory stance, with potential PMLA actions for non-compliance.
Taxation Turmoil and Regulatory Challenges
In addition to regulatory compliance, the Indian crypto market faces challenges related to taxation. The government’s decision to impose a 1% TDS on crypto transactions above INR 10,000 and a 30% tax on profits has caused concern within the industry. The Reserve Bank of India’s criticism of cryptocurrency and calls for a ban further contribute to the challenges faced by the Indian crypto industry. The collapse of major players like FTX and Binance facing DoJ sanctions adds to the negative sentiment.
Hot Take: India Takes Steps Towards Crypto Regulation
India’s registration of 28 VDA service providers with FIU-IND marks a significant step towards regulating the country’s crypto industry. By designating these entities as reporting entities under the PMLA, the government aims to prevent money laundering and protect citizens. However, challenges remain, including taxation issues and the uncertain regulatory framework. The industry faces scrutiny and uncertainty, leading some crypto firms to relocate to other countries. India’s crypto regulations will continue to evolve as the government seeks to balance innovation with investor protection.
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