Crackdown on Offshore Crypto Exchanges: Compliance Woes
Financial Intelligence Unit-India has sent notices to 25 offshore virtual digital asset providers for non-compliance under the Prevention of Money Laundering Act. The government mandated these providers to remove their services from Indian access as part of ongoing efforts to regulate virtual digital assets.
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- India
The Financial Intelligence Unit-India, operating under the finance ministry, has targeted 25 offshore virtual digital asset providers, including renowned ones like LBank and BingX from the British Virgin Islands. The move is in response to non-compliance with the Prevention of Money Laundering Act, highlighting regulatory challenges in the crypto sector.
In a statement released Wednesday, the government demanded these digital platforms cease operations accessible within India. This directive follows the 2023 initiative to include such virtual asset providers under stringent anti-money laundering regulations, reflecting heightened oversight efforts.
The government cautionary noted the inherent risks and lack of regulation surrounding crypto products and NFTs. Despite 50 providers registering with FIU IND, the identification of non-compliant entities continues, emphasizing the ongoing regulation enforcement across both offshore and onshore digital asset platforms.
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