India orders takedown of 15 offshore crypto platforms over AML non-compliance
The platforms were operating in India without registering with FIU-IND and complying with requirements under the Prevention of Money Laundering Act.
India’s Financial Intelligence Unit has issued non-compliance notices to 15 offshore virtual digital asset service providers and sought the takedown of their apps and websites for allegedly operating in the country without meeting requirements under the Prevention of Money Laundering Act.
The platforms include Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, Fixedfloat, WhiteBIT and Guardarian, the Ministry of Finance said on Wednesday.
FIU-IND issued the notices under Section 13 of the PMLA and has also sought action to remove the platforms’ applications and URLs from public access in India.
Offshore platforms also need FIU registration
Virtual digital asset service providers were brought under the PMLA framework in March 2023. Companies offering services such as exchange between virtual digital assets and fiat currencies, transfer of virtual digital assets and custody or administration of such assets are required to register with FIU-IND as reporting entities. The requirement applies to platforms serving Indian users even if they do not have a physical presence in the country. Registered entities are required to comply with obligations around customer due diligence, record-keeping and reporting of suspicious transactions.
India tightens oversight of crypto platforms
The action comes as Indian authorities continue to tighten oversight of offshore crypto platforms catering to domestic users. FIU-IND has previously taken action against crypto exchanges that operated in India without registration, including issuing compliance notices and seeking restrictions on access to their websites and apps.
The government has maintained that virtual digital assets do not have the status of legal tender in India and has repeatedly cautioned investors about the risks associated with crypto assets. Under Section 13 of the PMLA, FIU-IND can issue warnings, direct reporting entities to take corrective action and impose monetary penalties for failures to comply with the law.