TechFlow reports that India's Financial Intelligence Unit (FIU IND), under the Ministry of Finance, has recently issued compliance violation notices to nine overseas Virtual Digital Asset Service Providers (VDA SPs).
These service providers are considered to be operating illegally in India without complying with the Prevention of Money Laundering Act (PML Act). The companies—including Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex—are said to have failed to register in India and comply with anti-money laundering (AML) and counter-terrorist financing (CFT) frameworks. FIU IND has requested the Ministry of Electronics and Information Technology to block access to these entities' URLs within India.
Under the PML Act, all VDA SPs operating in India—whether domestic or foreign—must register with FIU IND as reporting entities and fulfill a set of obligations stipulated under the Prevention of Money Laundering Act, 2002. These obligations include reporting, record-keeping, and other requirements under the PML Act, including registration with FIU IND. To date, a total of 31 VDA SPs have registered with FIU IND.
