India Targets 15 Virtual Asset Providers for Non-Compliance
The Financial Intelligence Unit of India (FIU-IND) has initiated strict actions against fifteen Virtual Digital Assets Service Providers (VDA SPs) for failing to comply with regulations under the Prevention of Money Laundering Act, 2002 (PMLA). These notices aim to ensure adherence to financial rules applicable to virtual assets, reinforcing the government’s commitment to combating money laundering and related offenses.
In a decisive move, the Director of FIU-IND has issued notices under Section 13 of the PMLA to the following entities:
List of Non-Compliant Entities
| Trade Name | Entity Name |
|---|---|
| Weex | Weex International Exchange LTD |
| Blofin | BLF Global Limited |
| Rezorex | RezorEx |
| Bitunix | Bitunix LLC |
| DigiFinex | DigiFinex Ltd |
| Toobit | Hopeful Technology Co. Ltd. |
| XT.com | Fibtc Ltd/ XT TECHNICAL PTE. LTD. |
| Latoken | LAtrade Ltd |
| WOO X | Wootech Limited |
| Pionex | Marketa Trading Inc. |
| ChangeNow | CHN Group LLC |
| SimpleSwap | SimpleSwap LTD |
| Fixedfloat | FFGX Group LLC |
| WhiteBIT | UAB Clear White Technologies |
| Guardarian | FinSeven CZ |
Regulatory Compliance Required
As part of the FIU-IND’s efforts under the Information Technology Act, 2000, the director has directed these entities to take down their applications and URLs that provide public access to their services. The move underscores the importance of compliance with Indian laws, particularly in the proliferating sector of virtual digital assets.
Since March 2023, VDA SPs have been included under the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) framework. This framework mandates that all VDA SPs involved in activities such as exchanging virtual digital assets for fiat currencies, transferring digital assets, and managing these assets, must register with the FIU-IND as reporting entities. Compliance is necessary regardless of whether these entities are operated offshore or within India.
The regulations require stringent reporting and record-keeping protocols to help trace and prevent financial crimes. This includes registering with the FIU-IND to fulfill obligations laid down under the PMLA.
In a broader context, the FIU-IND has also reminded the public that investments in crypto products and non-fungible tokens (NFTs) carry significant risks due to a lack of regulatory oversight. Investors may face substantial financial losses without any guaranteed recourse.
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