The Financial Intelligence Unit (FIU) on Wednesday said it has issued notices to 15 crypto platforms for non-compliance with the country's <a href="https://www.mid-day.com/mumbai/mumbai-crime-news/article/parimatch-money-laundering-case-ed-mumbai-raids-17-locations-in-maharashtra-four-other-states-seizes-rs-2-11-crore-assets-freeze-rs-37-crore-23648813" target="_blank" rel="none noopener">anti-money laundering law</a>, according to new agency IANS.
The entities were also asked to take down their application/URLs for public access.
The &nbsp;Director of FIU-India issued notices as part of compliance action against entities operating without meeting the required obligations, the finance ministry said in a statement.
The ministry said that Virtual Digital Assets Service Providers (VDA SPs) operating in India, whether offshore or onshore, and engaged in activities like exchange of virtual digital assets and fiat currencies, and transfer of virtual digital assets, are required to be registered with FIU-IND as reporting entity and comply with Prevention of Money Laundering Act (PMLA). These obligations are activity-based and are unconditional or independent irrespective of whether the entity has physical presence in India.
The platforms include Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, FixedFloat, WhiteBIT and Guardarian.
The platforms were found to be operating illegally without complying with relevant provisions of the <a href="https://www.mid-day.com/news/india-news/article/mumbai-pmla-has-overriding-effect-over-debt-recovery-laws-rules-hc-sets-aside-tribunal-order-23623337" target="_blank" rel="none noopener">PMLA</a> in India, the ministry said.
"The Director, FIU-IND, being the nodal officer in pursuance of Section 79(3)(b) of the Information Technology Act, 2000 read with rule 3(1)(d) of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2025, has also issued notices with respect to the aforesaid entities to takedown the application/URLs for public access which have been found to be operating illegally without complying with the relevant provisions of the PMLA in India," the ministry said.
<h2>Virtual digital assets brought under money laundering ambit in 2023</h2>
Virtual digital asset service providers were brought under the ambit of India's anti-money laundering and counter-financing of terrorism framework in March 2023.
Moreover, registered VDA service providers are required to comply with reporting, record-keeping and other obligations under the PMLA and rules framed under the law.
The finance ministry warned that crypto products and non-fungible tokens (NFTs) are unregulated and can be highly risky.
"<a href="https://www.mid-day.com/business/business-news/article/bitcoin-falls-below-usd-60000-for-first-time-since-october-2024-as-investors-turn-to-ai-and-gold-23633944" target="_blank" rel="none noopener">Crypto products</a> and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions," the ministry said.
<h2>What is cryptocurrency?</h2>
Cryptocurrency is a medium of digital exchange that employs cryptography for secure transactions. Unlike the traditional banking system, this form of virtual currency exchange is completely decentralized using blockchains.
(With inputs from IANS)

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