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FIU Issues Show Cause Notice Top 9 Offshore Virtual Digital Assets Service Providers

Financial Intelligence Unit India (FIU IND) has issued compliance show cause notices to 9 offshore Virtual Digital Assets Service Providers (VDA SPs) Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, Bitfinex. The Finance Ministry has given this information.

URL blocking recommendation

FIU IND has written to the Ministry of Electronics and Information Technology to block the URLs of nine entities operating illegally without complying with the provisions of the PML Act in India. The Finance Ministry said in a statement, “Director FIU IND has written to the Secretary, Ministry of Electronics and Information Technology to block the URLs of those entities which are operating illegally in India without complying with the provisions of the PML Act. Are.”

Money laundering charges

FIU has issued show cause notices to nine foreign cryptocurrency and virtual digital asset (VDA) platforms for violating money laundering laws. FIU has accused these 9 virtual digital assets service providers of funding terrorism along with money laundering.

Virtual Digital Assets Service Providers (VDA SPs) were brought under the ambit of the Anti Money Laundering/Counter Financing of Terrorism (AML-CFT) framework under the provisions of the Prevention of Money Laundering (PML) Act, 2002 in March 2023.

As part of the compliance action against offshore entities, the Financial Intelligence Unit India (FIU IND) issued show cause notices to these nine offshore Virtual Digital Assets Service Providers (VDA SPs) under Section 13 of the Prevention of Money Laundering Act, 2002 Is.

Also Read: Smriti Irani mocks Rahul Gandhi’s Nyay Yatra

Must be registered with FIU IND

Let us tell you that VDAs (both offshore and onshore) operating in India and engaged in activities like exchange between virtual digital assets and fiat currencies, transfer of virtual digital assets, security of digital assets, they have to be registered with FIU IND. It is necessary.

Srishti Verma

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