FIU sends notices to offshore crypto exchanges

Key Highlights:

• FIU IND issued notices to 25 offshore VDA SPs for non-compliance under the PML Act, 2002.
• The notices include directives for the removal of their apps/URLs due to illegal operation in India.
• Targeted entities include Huione, Paxful, Changelly, CFX.IO, LBank, Youhodler, and Coinex.
• Currently, 50 VDA SPs are registered with FIU IND.

Detailed Insights:

• The FIU IND is intensifying enforcement against unregistered entities serving Indian users to combat money laundering.
• The Prevention of Money Laundering Act (PMLA) mandates registration and compliance for VDA SPs operating in India.
• Non-compliant offshore platforms pose risks to India's financial system and security due to lack of regulatory oversight.
• Registration with FIU IND brings VDA SPs under the purview of AML/CFT regulations, ensuring greater transparency.

Key Concepts Involved:

• VDA SPs: Entities providing services related to virtual digital assets like cryptocurrency exchanges.
• PML Act, 2002: Indian law enacted to prevent money laundering and provide for confiscation of property derived from it.
• AML/CFT: Measures to combat money laundering and the financing of terrorism.