Press Release; Dated: 01.10.2025
1. Introduction
The Financial Intelligence Unit – India (FIU-IND), the national agency responsible for monitoring financial transactions and combating money laundering, has taken regulatory action against several offshore Virtual Digital Asset Service Providers (VDA SPs). These measures highlight the government’s efforts to strengthen compliance within the rapidly growing digital asset sector and safeguard users from potential risks.
2. Action Against Offshore VDA SPs
FIU-IND has issued formal notices to 25 offshore VDA SPs under Section 13 of the Prevention of Money Laundering Act, 2002 (PMLA). The notices cite non-compliance with regulatory requirements, including failure to register with FIU-IND. This step underscores the government’s zero-tolerance approach to money laundering risks in the digital asset ecosystem.
3. Takedown of Unregistered Platforms
In addition to issuing notices, FIU-IND has also directed the takedown of applications and URLs belonging to these unregistered VDA SPs. These directions, issued under Section 79(3)(b) of the Information Technology Act, 2000, aim to prevent unregulated offshore platforms from offering services to Indian users. By blocking access, authorities seek to protect investors from using unauthorized and potentially unsafe platforms.
4. Status of Registrations and Compliance
So far, 50 VDA SPs have successfully registered with FIU-IND, indicating growing compliance within the sector. However, the continued presence of unregistered entities poses significant challenges to regulatory enforcement. The latest action is expected to encourage other offshore and domestic players to regularize their operations in accordance with Indian laws.
5. Conclusion
In conclusion, FIU-IND’s actions against non-compliant offshore VDA SPs reflect India’s determination to regulate the digital asset industry under existing anti-money laundering and IT frameworks. Users are once again cautioned that cryptocurrency products and NFTs remain unregulated and inherently risky. Investors are advised to exercise due diligence, engage only with registered platforms, and remain aware of the potential risks associated with digital assets.
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