Financial Intelligence Unit- India (FIU-IND) issues notices for non-compliance to 15 Virtual Digital Assets Service providers (VDA SPs) under Section 13 of the Prevention of Money Laundering Act (PML) Act, 2002
The Financial Intelligence Unit-India (FIU-IND) has issued non-compliance notices under Section 13 of the Prevention of Money Laundering Act, 2002 to 15 Virtual Digital Assets Service Providers. Additionally, the FIU-IND has issued notices to block their URLs and applications for operating illegally in India without compliance. These VDA SPs were brought under the Anti Money Laundering framework in March 2023.
Why It Matters
This is relevant for competitive exams as it pertains to financial regulation, economic policy, and anti-money laundering measures enforced by Indian statutory bodies like the FIU-IND under the PMLA, 2002.
In Simple Words
The Financial Intelligence Unit-India (FIU-IND) took action against 15 Virtual Digital Assets Service Providers (VDA SPs) for failing to comply with the Prevention of Money Laundering Act (PMLA), 2002. These entities have also been issued notices to take down their apps and URLs because they were operating illegally in India without required registrations.
VDA SPs operating in India were added to the Anti-Money Laundering framework in March 2023. They are legally required to register with FIU-IND and follow reporting and record-keeping rules, regardless of whether they have a physical presence in India. Crypto products and NFTs remain unregulated and carry high risks.
Key Points
- FIU-IND issued notices to 15 Virtual Digital Assets Service Providers (VDA SPs) under Section 13 of the PMLA, 2002.
- Notices include takedown requests for applications and URLs operating illegally without PMLA compliance.
- VDA SPs were included in the Anti Money Laundering/Counter Financing of Terrorism framework in March 2023.
- VDA SPs must register with FIU-IND as Reporting Entities and comply with PMLA obligations regardless of physical presence.
- Listed entities include Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, Fixedfloat, WhiteBIT, and Guardarian.
- Crypto products and NFTs are stated to be unregulated and highly risky with no regulatory recourse for losses.
Exam Angle
A. Section 13
Source: Press Information Bureau