FIU-IND issues notices to 15 virtual digital asset service providers for PMLA non-compliance
FIU-IND has issued notices to 15 virtual digital asset service providers for alleged PMLA non-compliance and ordered action against platforms found operating illegally in India.
The notices were issued by the Director, FIU-IND, under Section 13 of the PMLA as part of compliance action against entities operating in the virtual digital assets sector.
NEW DELHI: The Financial Intelligence Unit-India (FIU-IND) has issued notices to 15 Virtual Digital Assets Service Providers (VDA SPs) for alleged non-compliance with provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The notices were issued by the Director, FIU-IND, under Section 13 of the PMLA as part of compliance action against entities operating in the virtual digital assets sector. The action also includes directions to take down applications or URLs found to be operating illegally without complying with applicable PMLA provisions.
15 VDA platforms under scrutiny
The entities named in the FIU-IND notice are:
- Weex — Weex International Exchange LTD
- Blofin — BLF Global Limited
- Rezorex — RezorEx
- Bitunix — Bitunix LLC
- DigiFinex — DigiFinex Ltd
- Toobit — Hopeful Technology Co. Ltd.
- XT.com — Fibte Ltd/XT TECHNICAL PTE. LTD.
- Latoken — LAtrade Ltd
- WOO X — Wootech Limited
- Pionex — Marketa Trading Inc.
- ChangeNow — CHN Group LLC
- SimpleSwap — SimpleSwap LTD
- FixedFloat — FFGX Group LLC
- WhiteBIT — UAB Clear White Technologies
- Guardian — FinSeven CZ
VDA platforms brought under AML framework
Virtual Digital Asset Service Providers were brought within India’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework under the PMLA in March 2023.
According to FIU-IND, VDA service providers operating in India, whether offshore or onshore, and engaged in activities such as exchange between virtual digital assets and fiat currencies, transfer of virtual digital assets, safekeeping or administration of such assets, or services enabling control over virtual digital assets, are required to register with FIU-IND as reporting entities.
Their obligations include reporting, record-keeping and other compliance requirements prescribed under the PMLA and rules framed under it. These obligations are activity-based and do not depend on whether a service provider has a physical presence in India.
Public warned about crypto risks
FIU-IND also cautioned the public that crypto products and non-fungible tokens (NFTs) remain unregulated and can carry significant risks. It said there may be no regulatory recourse for losses arising from such transactions.
The latest action signals increased regulatory scrutiny of virtual digital asset platforms and their compliance with India’s anti-money laundering framework.
