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28 Indian crypto platforms have registered with the Financial Intelligence Unit, the country’s Minister of State for Finance said.
In response to queries in the Lok Sabha, the lower house of India’s bicameral Parliament, Indian Minister of State for Finance Pankaj Chaudhary told the Parliament’s Lower House in a written reply that 28 virtual digital asset service providers had been given the green flag by the country’s anti money-laundering department.
Notable exchanges such as CoinDCX, WaxirX and CoinSwitch have all successfully registered with the Financial Intelligence Unit (FIU), while none of the 28 entities appear to be offshore companies.
The move follows India’s Finance Ministry’s announcement in March, when the government unit mandated that crypto businesses will have to register with the FIU and adhere to various processes outlined in the Prevention of Money Laundering Act (PMLA).
Crypto businesses in India are now legally obligated to carry out verification processes like Know Your Customer (KYC). Entities subject to the PMLA are also required to uphold and maintain KYC details, along with other pertinent documents related to transactions, clients, and beneficial owners.
Chaudhary also affirmed that the guidelines and reporting requirements for crypto service providers are applicable to offshore crypto exchanges serving the Indian market. This approach is taken to reinforce future crypto regulations in India, aiming to protect its citizens from potential exchange collapses.
“Appropriate action under PMLA” would be taken against non-compliant offshore platforms, Chaudhary added.
Alongside heightened regulatory compliance, the Indian crypto market is grappling with additional challenges, notably in the realm of taxation. The government’s imposition of a 1% Tax Deducted at Source (TDS) on crypto transactions exceeding INR 10,000 and a 30% tax on profits has reverberated throughout the industry.
The Reserve Bank of India’s (RBI) has also been openly critical of crypto, and has called for a cryptocurrency ban.
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