Key highlights
- A total of nine offshore cryptocurrency platforms for non-compliance under the Prevention of Money Laundering Act have been served notice.
- The government might block Block Binance, Kraken, and more.
Nine offshore Virtual Digital Assets Service Providers (VDA SPs) have been served show-cause notices by the Financial Intelligence Unit India (FIU IND). The compliance show-cause notices have been sent per Section 13 of the Prevention of Money Laundering Act (PMLA) as part of a compliance action against offshore firms.
According to a press release, “Virtual Digital Assets Service Providers (VDA SPs) were brought into the ambit of Anti Money Laundering/Counter Financing of Terrorism (AML-CFT) framework under the provisions of the Prevention of Money Laundering Act (PML) Act, 2002 in March 2023.”
Director FIU IND has requested from the Secretary of the Ministry of Electronics and Information Technology that the URLs of the mentioned entities that are operating illegally and in violation of the PML.
As per the FIU IND, Virtual Digital Asset Service Providers (VDA SPs) operating in the country (both onshore and offshore) and are involved in activities such as the exchange between virtual digital assets and fiat currencies, transfer of virtual digital assets, safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets etc. should register with FIU IND as Reporting Entity and comply with the set of obligations as mandated under Prevention of Money Laundering Act (PMLA) 2002.
As per the PML Act, the regulation casts reporting, record keeping, and other obligations on the VDA SPs also includes registration with the FIU IND.
Name of the Offshore VDA Service Provider
- Binance
- Kucoin
- Huobi
- Kraken
- Gate.io
- Bittrex
- Bitstamp
- MEXC Global
- Bitfinex
 have been served show-cause notices by the Financial Intelligence Unit India (FIU IND).){kind=link}