Financial Intelligence Unit India (FIU IND) has issued notices to 25 offshore Virtual Digital Asset Service Providers (VDA SPs) for non-compliance with the provisions of the Prevention of Money Laundering (PML) Act, 2002. The move is part of ongoing efforts to bring all VDA service providers catering to Indian users under the Anti-Money Laundering/Counter Financing of Terrorism (AML-CFT) framework.
Notices have been issued to offshore VDA SPs including Huione, BC.Game, Paxful, Changelly, CEX.IO, LBank, YouHodler, BingX, PrimeXBT, BTCC, and others, totaling 25 entities operating from locations such as Hong Kong, Singapore, the US, UK, British Virgin Islands, Liechtenstein, Seychelles, and the Cayman Islands.
The notices were issued under Section 13 of the PML Act, 2002, addressing non-compliance with AML-CFT obligations, including registration with FIU IND. In addition, notices were also issued under Section 79(3)(b) of the IT Act, 2000, directing the takedown of applications and URLs that operate illegally without complying with Indian law.
The compliance action follows the March 2023 notification that brought Virtual Digital Asset Service Providers operating in India (onshore or offshore) under the AML-CFT framework.
The action targets entities operating internationally but providing services to Indian users. Notices were served across multiple jurisdictions where these providers are registered or operate.
VDA SPs, including crypto exchanges and NFT platforms, must comply with PMLA regulations to prevent money laundering and terrorist financing. Non-compliance exposes users to legal and financial risks, as unregistered crypto products remain unregulated and highly risky.
FIU IND continues to identify offshore entities offering VDA services to Indian users without registration and ensures enforcement through notices, monitoring, and directives for takedown of illegal platforms. Registered VDA SPs are required to maintain activity-based compliance, record-keeping, and reporting obligations, irrespective of their physical presence in India.
So far, 50 VDA SPs are registered with FIU IND, while enforcement efforts target those operating outside the framework to strengthen regulatory oversight.
