Site icon News Azi

Crypto under PMLA: CoinDCX registers itself as reporting entity with FIU

Crypto under PMLA: CoinDCX registers itself as reporting entity with FIU






CoinDCX on Friday announced that it had registered itself as the “reporting entity” with the Ministry of Finance’s Financial Intelligence Unit (FIU). As per the Prevention of Money Laundering Act (PMLA), 2002, a reporting entity is required to conduct KYC verification of the customers and maintain their records. If required, they also need to share records of suspicious transactions with the authorities.


“We welcome the government’s move to include the VDA industry under the Prevention of Money Laundering Act, 2002 (PMLA). This will pave the road towards increased accountability and implementation of best practices by the VDA industry. As an exchange advocating for regulations and compliance, we are happy to be an FIU-registered reporting entity. As the industry continues to evolve, we will continue building trust and transparency, and focus on educating stakeholders to make VDA and Web3 safer and compliant,” said Sumit Gupta, founder and chief executive officer (CEO) of CoinDCX.


Last week, the Centre brought cryptocurrencies under the ambit of the PMLA, 2002. According to the government notification, the exchange between virtual digital assets and fiat currencies, the exchange between one or more forms of virtual digital assets and the transfer of digital assets will be covered under money laundering laws.


The definition of “virtual assets” would include cryptocurrencies and non-fungible tokens.


Broadly, this means that any financial wrongdoing involving cryptocurrency assets can now be investigated by the Enforcement Directorate (ED). Additionally, the FIU-IND under the Department of Revenue will be responsible for receiving, processing, analysing, and disseminating the information relating to suspect financial transactions.


Speaking with Business Standard last week, Gupta said there is a need for clear regulations in the sector, and it would be better if countries come together and frame common global regulations.


“India having different regulations and the US having different will create regulatory arbitrage. This will not be good as this asset class is borderless,” he said.


CoinDCX was also the first crypto exchange in India to publish its proof of reserves after the FTX fallout.


“CoinDCX will continue to work closely with the authorities to identify and address any potential risks associated with the use of VDAs in the future,” the company said in a release on Friday.


Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – admin@newsazi.com. The content will be deleted within 24 hours.
Exit mobile version