28 crypto platforms register with Financial Intelligence Unit-India to comply with anti money laundering norms - CNBC TV18 (2024)

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28 crypto platforms register with Financial Intelligence Unit-India to comply with anti money laundering norms - CNBC TV18? ›

As many as 28 Virtual Digital Assets (VDA) service providers, including WazirX, Coin DCX and Coinswitch, have registered themselves with the Financial Intelligence Unit-India (FIU-IND), Finance Ministry said on Monday.

KuCoin became among the first global cryptocurrency exchanges to register with FIU-IND. The world's largest cryptocurrency exchange, Binance, also becomes the exchange to register with FIU after its rival KuCoin, months after being banned from India for operating illegally.

The Indian government's Financial Intelligence Unit (FIU) has approved the applications of offshore cryptocurrency exchanges Binance and Kucoin to register them as Virtual Asset Service Providers (VASPs) to trading in India, a top government official said.

These, apart from Binance included KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.

Meanwhile, OKX decided to discontinue its services in India from April 30. In December 2023, around nine offshore exchanges including KuCoin, Binance, OKX, Houbi among others were found to be not registered under FIU-IND and weren't aligned with the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The Ministry has further clarified that even offshore VDA service providers (which are engaged in servicing the Indian market) must register with FIU-IND as reporting entities. Reportedly, 31 VDA service providers have been registered as reporting entities with the FIU-IND (till date).

Reporting entity means a banking company, financial institution, intermediary or a person carrying on a designated business or profession.

According to Vivek Aggarwal, Director, FIU-IND and Additional Secretary Department of Revenue Government of India, KuCoin is fully registered and operational now after paying a penalty fee of Rs 34.5 lakh.

Binance and several other offshore cryptocurrency exchanges were issued showcause notices by Indian authorities and subsequently removed from India for "operating illegally" in January 2024.

Who must register with FIU? ›

All businesses, companies and individuals that perform the functions listed in the First Schedule of the Proceeds of Crime Act, Chap 11:27 and non-regulated financial institutions as defined in Section 2 of the Financial Intelligence Unit of Trinidad and Tobago Act are required to register with the FIUTT.

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MUMBAI, May 10 (Reuters) - Binance, the world's largest cryptocurrency exchange, has registered with India's Financial Intelligence Unit (FIU), a senior FIU official said on Friday, as the exchange seeks to resume operations in the country.

Cryptocurrency trading is legal in India, but it is a highly regulated industry. Investors should carefully consider the legal and regulatory aspects, as well as the risks involved, before engaging in any cryptocurrency trading activities.

India requires virtual digital asset service providers, like crypto exchanges, to be registered with the FIU and comply with obligations mandated under the country's anti-money laundering rules. While Binance has registered with the FIU, it can resume operations only after paying a penalty for previous non-compliance.

Operating within a regulatory gray area, Bybit is not registered with India's Financial Intelligence Unit (FIU) or several other global regulatory bodies. However, the platform prioritizes compliance with Anti-Money Laundering (AML) regulations.

Steps To Buy Cryptocurrency In India

Step 1: Sign up on your desired crypto exchange platform. Step 2: Set up your account security by verifying your email address. Step 3: Complete the Know Your Customer (KYC) process. Step 4: Add funds to your crypto exchange wallet.

Established in 2017, CoinSwitch operates as a reporting entity under the purview of the Financial Intelligence Unit-India, implementing stringent transaction monitoring protocols and fully adhering to KYC and PMLA guidelines in India.