28 Crypto Firms Successfully Register Operations with India’s Financial Intelligence Unit: In-Depth Information Revealed
Pankaj Chaudhary, Minister of State for Finance, Confirms the Latest Development in Crypto Firm Registrations.
“WazirX, CoinDCX, CoinSwitch, and More: 28 Crypto Firms Register Operations with India’s FIU
WazirX, CoinDCX, and CoinSwitch are among the 28 crypto firms that have successfully registered their operations with the Indian Financial Intelligence Unit (FIU). The mandatory registration, required for firms dealing in virtual digital assets, was initially mandated in March of this year. In India, entities engaging in crypto assets are classified as ‘reporting entities’ under the Prevention of Money Laundering Act (PMLA), aimed at safeguarding the investor community from potential threats posed by cryptocurrencies.
During a recent parliamentary disclosure, Pankaj Chaudhary, the Minister of State for Finance, officially confirmed that 28 crypto-related firms have completed the registration process with Indian authorities over the past two years. Other notable names on the list include Unocoin, Giottus, Zebpay, Mudrex, Buyucoin, Rario, and Bitbns, with screenshots of the registration details circulating on social media.”
A Big development as Crypto in Parliament:
Question: a request was made to provide the list of reporting entities in India🇮🇳 (crypto companies) dealing in VDA (crypto).
Answer: The list of reporting entities dealing in VDA is mentioned below👇 pic.twitter.com/Ej2dqjzgJk
— Kashif Raza (@simplykashif) December 4, 2023
Commenting on the development, R Venkatesh, Senior VP and Public Policy head, CoinSwitch said, “this is heartening and lays to rest any confusion (intended or unintended) about the applicability of India’s PMLA provisions to foreign VDA trading platforms.”
Back in March this year, India’s Finance Ministry said that entities dealing in virtual digital assets would be considered ‘reporting entities’ under the PMLA.
Ashish Singhal, the co-founder and CEO of CoinSwitch explained what it means to be a ‘reporting entity’ under the PMLA guidelines, while replying on a thread on X.
“As a reporting entity to FIU-IND, VASPs like CoinSwitch fall under the PMLA guidelines — similar to banks, stockbrokers etc. The best practices followed by these financial institutions on transaction monitoring now applies to crypto too. Previously, there was no clarity on this. Now, India has a proper framework for crypto too…more transparency,” Singhal said.
Under the anti-money laundering law, reporting entities are required to maintain KYC details or records of documents evidencing the identity of its clients and beneficial owners as well as account files and business correspondence relating to its clients.
“Indian Crypto Entities Seek Equality in Taxation and Compliance Enforcement
Indian-based Reporting Entities (REs), currently grappling with unfavorable tax treatment for Virtual Digital Assets (VDAs), are advocating for the prompt resolution of the discriminatory impact of the Prevention of Money Laundering Act (PMLA) notification. Venkatesh expressed optimism, citing the Minister’s assurance that ‘appropriate action under PMLA shall be initiated in cases of non-compliance by offshore platforms.’
Currently, offshore platforms like Binance and Coinbase are not included in the FIU’s crypto list. However, to avoid legal consequences, they are required to register with Indian authorities.
During India’s G20 presidency, collaborative efforts with global financial institutions were made to formulate international laws governing the crypto sector. Finance Minister Sitharaman indicated the adoption of the G20 roadmap on crypto, with further clarity anticipated during Brazil’s G20 presidency.”
