Nine offshore cryptocurrency platforms have received show-cause warnings from India’s Financial Intelligence Unit (FIU), which is under the Ministry of Finance’s jurisdiction, in accordance with the strict Prevention of Money Laundering Act (PMLA). The show-cause notice has been delivered to prominent virtual asset marketplaces such as Kucoin, MEXC Global, Bittrex, Bitfinex, Bitstamp, Gate.io, Kraken, and Binance. The notifications are being given for breaking the laws against money laundering.
This enforcement action followed the government’s announcement earlier this month that up to 31 domestic cryptocurrency service providers had registered with the FIU.
‘Reporting Entity’ registration is required as per Indian Laws
Digital asset service providers must register as a “Reporting Entity” with the Financial Intelligence Unit India (FIU IND) in order to conduct business, whether they are based in India or not.
These providers maybe involved in activities like transferring, converting between digital assets and traditional currencies, protecting or managing digital assets, and using instruments that grant control over digital assets.
Furthermore, they must comply with a particular set of duties delineated in the Prevention of Money Laundering Act (PMLA) of 2002.
Additionally, the “Reporting Entity” is required to provide statements of financial transactions (SFT) to the Income Tax department, which must reveal any reportable accounts they maintained during the year as well as specific financial transactions.
Additionally, the “Reporting Entity” is required to provide statements of financial transactions (SFT) to the Income Tax department, which must reveal any reportable accounts they maintained during the year as well as specific financial transactions.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
