On Monday, Pankaj Chaudhary, the Minister of State for Finance, informed the Lok Sabha that 28 crypto exchanges and virtual digital asset service providers have successfully registered with the Financial Intelligence Unit–India. Notable names among them include CoinX, Unocoin, Bitbns, Zebpay, WazirX, Coinswitch, CoinswitchX, and Rario.
In response to a query by Lok Sabha MP Lavu Sri Krishna Devarayalu regarding the applicability of anti-money laundering guidelines and reporting requirements to offshore crypto exchanges serving the Indian market, Minister Chaudhary confirmed, “Yes, the guidelines and reporting requirements are applicable to offshore crypto exchanges servicing the Indian market. The process of registration for the said VDA SPs has been initiated.”
This registration with FIU-India follows the Finance Ministry’s decision in March of the current year to designate entities involved in virtual digital assets (VDAs), crypto exchanges, and intermediaries as ‘reporting entities’ under the Prevention of Money Laundering Act (PMLA). Consequently, crypto exchanges and intermediaries dealing with VDAs were mandated to conduct Know Your Customer (KYC) processes for their clients and platform users.
As per the anti-money laundering law, reporting entities are obligated to maintain KYC details, records of documents verifying the identity of clients and beneficial owners, as well as account files and business correspondence pertaining to their clients.
