As many as 28 Virtual Digital Assets (VDA) service providers, including WazirX, Coin DCX and Coinswitch, have registered themselves with the Financial Intelligence Unit-India (FIU-IND), Finance Ministry said on December 4. The Finance Ministry in March had said entities dealing in VDAs, crypto exchanges and intermediaries would be considered "reporting entity" under the Prevention of money laundering Act (PMLA).
Accordingly, crypto exchanges and intermediaries dealing with VDAs were required to perform KYC of their clients and users of the platform. To a question on whether these guidelines and reporting requirements are applicable to Offshore Crypto Exchanges servicing the Indian market, Minister of State for Finance Pankaj Chaudhary replied in the affirmative.
"The guidelines and reporting requirements are applicable to offshore crypto exchanges servicing the Indian Market. The process of registration for the said VDA service providers has been initiated," Chaudhary said in the Lok Sabha. Appropriate action under PMLA shall be initiated in cases of non-compliance by offshore platforms, he added.
The minister further said 28 entities have registered themselves for providing services related to VDAs. These include Neblio Technologies Pvt Ltd operating trading platform Coin DCX, Zanmai Labs Pvt ltd (WazirX), Bitcipher Labs LLP (Coinswitch), Nextgendev Solutions Pvt Ltd (CoinswitchX), Awlencan Innovations India Ltd (Zebpay).
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.
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