India Cracks Down on Crypto: FIU-IND Mandates Registration, Fines for Non-Compliance
India is bolstering its oversight of cryptocurrency markets. The Financial Intelligence Unit - India (FIU-IND) has mandated all crypto firms serving Indian customers, including those based offshore, to register for compliance. Non-compliance could result in hefty fines.
FIU-IND has issued orders under the IT Act, 2000, to remove unregistered crypto apps and websites operating in India. Notably, the crypto exchange WazirX has been named for operating without a registered license and violating anti-money laundering (AML) rules under the Prevention of Money Laundering Act (PMLA).
FIU-IND has sent notices to 25 offshore crypto firms for breaching AML rules. The Finance Ministry has also warned retail users about the risks of investing in unregulated digital asset markets. The registration requirement applies to services like crypto-to-fiat exchanges, custody solutions, and wallet operators. Despite the crackdown, cryptocurrencies and non-fungible tokens (NFTs) remain unregulated in India, lacking investor protection.
FIU-IND's actions indicate a broader clean-up effort in India's digital asset market. Non-compliant firms face financial penalties and potential service removal. While the registration process aims to enhance compliance, the unregulated status of cryptocurrencies and NFTs persists, leaving investors vulnerable.
