Indian Financial Intelligence Unit India (FIU IND) has sent compliance Show Cause Notices to the nine offshore Virtual Digital Assets Service Providers (VDA SPs) following Section 13 of the Prevention of Money Laundering Act, 2002 (PMLA).
The announcement was made after the Prevention of Money Laundering Act (PML) Act, 2002, brought Virtual Digital Assets Service Providers (VDA SPs) under the purview of the Anti Money Laundering/Counter Financing of Terrorism (AML-CFT) framework in March 2023.
The show cause notices included nine offshore VDA service providers, which are Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex
The Secretary of the Ministry of Electronics and Information Technology has received a letter from Director FIU IND requesting that the URLs of the aforementioned entities—which are functioning illegally and in violation of the PML Act in India—be blocked.
VDA SPs have registered with FIU IND as of December 31. Even nevertheless, several offshore companies that serve a sizable portion of Indian consumers were failing to register and fall under the purview of the Anti Money Laundering (AML) and Counter Financing of Terrorism (CFT) regulations.
Also Read: India’s Income Tax Intensifies Crypto Tax Scrutiny
