FIU-India Issues Notices To 15 Crypto Firms For PMLA Violations, Orders Website Takedowns
The Financial Intelligence Unit-India (FIU-IND) has initiated compliance action against 15 Virtual Digital Assets Service Providers (VDA SPs) for alleged violations of anti-money laundering regulations. The financial crime watchdog has issued notices to these entities under Section 13 of the Prevention of Money Laundering Act (PMLA) and directed them to remove their applications and website URLs…
The Financial Intelligence Unit-India (FIU-IND) has taken regulatory action against 15 Virtual Digital Assets Service Providers (VDA SPs) for alleged breaches of anti-money laundering laws. FIU-IND has issued notices under Section 13 of the Prevention of Money Laundering Act (PMLA) and instructed these companies to deactivate their online applications and websites due to non-compliance with regulatory standards.
The Financial Intelligence Unit's Director announced the notices, detailing the non-compliant entities which include Bitunix, DigiFinex, Pionex, WhiteBIT, Fixedfloat and Toobit. These Virtual Digital Asset Service Providers engage in activities like trading virtual currencies for fiat money, facilitating the transfer of digital assets and providing related services.
All Virtual Digital Asset Service Providers that exchange virtual digital assets for fiat currencies, transfer digital assets or offer similar services are obligated to register with FIU-IND as reporting entities. Registration and compliance requirements apply to both Indian-based and overseas companies that provide services to Indian users, irrespective of whether the company operates within India.
The action was prompted by firms that failed to meet their anti-money laundering obligations under the framework. The entities targeted in the notices include Weex International Exchange, BLF Global, Bitunix LLC, DigiFinex Ltd and FinSeven CZ. The Director of FIU-IND also directed these firms to remove their applications and website URLs from public access, as they were found to be operating illegally without adhering to the relevant provisions of PMLA in India.
The Ministry of Finance cautioned investors about the risks associated with cryptocurrencies, emphasizing that these products and NFTs are unregulated and carry significant risks. There is no regulatory recourse for any losses incurred from such transactions. The government's recent actions reflect its commitment to enforcing mandatory reporting and compliance standards for cryptocurrency service providers operating in India.
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