Crypto Market: The Financial Intelligence Unit (FIU) under the Finance Ministry has sent show cause notices to 9 offshore virtual digital assets service providers, including crypto exchange operator Binance.
If you have invested in crypto currency then be careful. In fact, the Indian Ministry of Finance has sent show cause notices to 9 offshore virtual digital assets service providers including crypto exchange operator Binance. These 9 institutions include Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex.
The Financial Intelligence Unit (FIU) under the Finance Ministry has sent this notice for non-compliance of anti-money laundering law. According to news agency PTI, FIU has also written a letter to the Ministry of Electronics and Information Technology (MeitY) to block the URLs of these 9 digital platforms. These platforms were operating without following the provisions of the Prevention of Money Laundering Act (PMLA) in India.
FIU sent notice to these companies
The Finance Ministry said in the statement that apart from Binance and QCoin, FIU has also sent notices to Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex. A notice has been sent to them for not registering as a reporting entity with FIU-IND. Let us tell you that FIU-IND is a central agency responsible for collecting, processing, analyzing and disseminating information related to suspicious financial transactions to enforcement agencies and foreign FIUs.
It is necessary to register as a reporting entity
Virtual Digital Assets Service Providers (VDA SP) operating in India are required to register as a reporting entity with FIU-IND. Apart from this, they also have to follow the provisions of PMLA, 2002. Till now, a total of 31 VDA-SPs have registered themselves with FIU-IND.