In recent developments, the Financial Intelligence Unit (FIU) has issued notices to nine offshore crypto platforms, including industry giants like Binance and KuCoin, alongside Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfenex. The FIU’s firm stance involves not just compliance notices but also reaching out to the Ministry of Electronics and Information Technology to block URLs, aligning with the Prevention of Money Laundering Act, 2002 (PMLA).
The PMLA mandates registration with the FIU for all Virtual Digital Assets Service Providers (VDA SPs) operating in India, imposing reporting, record-keeping, and other obligations to ensure Anti Money Laundering/Counter Financing of Terrorism (AML-CFT) compliance. However, offshore entities neglecting these obligations have been serving a significant portion of Indian users.
While Binance, KuCoin, Bitget, Huobi, Gate.io, and MEXC face blocks on Apple’s App Store in India, WazirX remains unaffected, showcasing its commitment to regulatory compliance. The show cause notice gives these entities a chance to redeem themselves, but failure to comply may result in URL blocking and potential Google Play Store restrictions in India.
Looking ahead, the Government of India signals a push toward enforcing Tax Deducted at Source (TDS) provisions on foreign entities engaged in Virtual Digital Asset (VDA) transactions. WazirX, already compliant, stands firm, ensuring users’ funds are secure and aligned with Indian regulatory standards.
WazirX, a proudly Made in India platform, stands as one of the pioneers among Virtual Digital Assets Service Providers (VDA SPs) registered with FIU IND as a reporting entity in March 2023. It is committed to responsible and lawful crypto trading, where our commitment is towards complete implementation of the rules in letter and spirit. Setting itself apart, WazirX duly conducts necessaary Anti-Money Laundering (AML) checks and has in place procedures and systems to ensure appropriate collection of Tax Deducted at Source (TDS) compliance mechanism. Every transaction aligns with taxation provisions, thereby ensuring financial transparency.
In the ever-evolving crypto landscape, WazirX emerges as a model of compliance, proving that responsible trading can coexist with innovation and user-friendly platforms. As regulatory winds sweep through the crypto world, WazirX remains steadfast, ready to set the standard for the industry’s future.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
