FIU-IND Issues Notices to 15 Crypto Firms
Action targets VDA service providers over PMLA non-compliance; takedown notices issued for illegal access in India
- FIU-IND issued notices to 15 Virtual Digital Assets Service Providers.
- The action was taken under Section 13 of the PMLA, 2002.
- Takedown notices were also issued for related applications and URLs.
- VDA service providers operating in India must register with FIU-IND and meet AML/CFT obligations.
GG News Bureau
New Delhi, 9th Sept: The Financial Intelligence Unit-India (FIU-IND) has issued notices for non-compliance to 15 Virtual Digital Assets Service Providers (VDA SPs) under Section 13 of the Prevention of Money Laundering Act (PMLA), 2002.
The notices cover Weex International Exchange LTD (Weex), BLF Global Limited (Blofin), RezorEx (Rezorex), Bitunix LLC (Bitunix), DigiFinex Ltd (DigiFinex), Hopeful Technology Co. Ltd. (Toobit), Fibtc Ltd/XT TECHNICAL PTE. LTD. (XT.com), LAtrade Ltd (Latoken), Wootech Limited (WOO X), Marketa Trading Inc. (Pionex), CHN Group LLC (ChangeNow), SimpleSwap LTD (SimpleSwap), FFGX Group LLC (Fixedfloat), UAB Clear White Technologies (WhiteBIT) and FinSeven CZ (Guardarian).
The Director, FIU-IND, acting as the nodal officer under Section 79(3)(b) of the Information Technology Act, 2000, read with Rule 3(1)(d) of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2025, has also issued notices for takedown of applications and URLs associated with the entities.
According to FIU-IND, the applications and URLs were found to be operating illegally without complying with the relevant PMLA provisions applicable in India.
VDA service providers were brought under the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework through the PMLA in March 2023.
VDA service providers operating in India, whether offshore or onshore, and involved in activities such as exchange between virtual digital assets and fiat currencies, transfer of virtual digital assets, or safekeeping and administration of virtual digital assets, are required to register with FIU-IND as Reporting Entities.
They are also required to comply with reporting, record-keeping and other obligations under the PMLA and rules framed under it. FIU-IND said these obligations are activity-based and do not depend on the entity having a physical presence in India.
FIU-IND also cautioned the public that crypto products and NFTs are unregulated and can be highly risky, and there may be no regulatory recourse for losses arising from such transactions.
