New Delhi, Sept. 9: The Financial Intelligence Unit India (FIU IND) has issued notices to 15 Virtual Digital Assets Service Providers for alleged non compliance with anti money laundering laws.
The FIU has also directed the entities to take down their applications and URLs from public access, according to the Finance Ministry.
The action was taken under Section 13 of the Prevention of Money Laundering Act (PMLA).
The affected entities include Weex International Exchange, BLF Global, Bitunix LLC, DigiFlex Ltd and FinSeven CZ.
FIU Tightens Action Against Non Compliant Crypto Firms
VDA service providers operating in India must register with FIU IND as reporting entities and comply with the PMLA.
The requirement applies to both offshore and domestic providers. It covers activities such as crypto asset exchanges and transfers.
The ministry said these obligations are based on the activities carried out by a provider. They do not depend on whether the entity has a physical presence in India.
The government brought VDA service providers under the anti money laundering and countering financing of terrorism framework in March 2023.
The FIU said the latest notices form part of compliance action against entities operating without meeting the required legal obligations.
The Finance Ministry also issued an investor warning about crypto products and non fungible tokens.
It said such products remain unregulated and can carry significant risks. It also warned that investors may have no regulatory recourse for losses from such transactions.
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