9 Crypto exchange companies were issued a showcause notice under the Prevention of Money Laundering Act, 2002, on Thursday.
PMLA Showcause Notices Sent to 9 Crypto Exchanges
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The exchanges that got the notices include Binance, Kraken, KuCoin, Bitterex, Gate.io, MEXC Global, Bitstamp, and BitFinex under section 13 of PMLA 2002. The director of the FIU, Finance Intelligence Unit, has written to the Ministry of Electronics and Information Technologies to block access to the URLs of the said entities running unlawfully in India without complying with the provision of PMLA.
Virtual Digital Asset providers such as crypto exchanges have been brought under the Anti Money Laundering and Counter Finance of Terrorism Framework under the PMLA 2002 in March 2023. Such type of platforms that offers the exchange of digital assets and fiat, Safekeeping or administration of the VDAs, transfer of VDAs, etc., all are required to be registered with the FIU as the reporting entities and also to comply with the obligations as mandated under the Prevention of Money Laundering Act 2002.
This regulation needs to be registered with the FIU and also to report and keep records with FIU under the act. The data shows over 31 VDA service providers have been registered with the Finance Intelligence Unit.
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