The Financial Intelligence Unit-India (FIU-IND), operating under the Ministry of Finance, has issued compliance notices to fifteen virtual digital asset service providers for breaking money laundering prevention rules. The agency has also ordered these platforms to remove their applications and websites from public access. The action targets crypto exchanges and related services that have been operating in India without following mandatory financial regulations.
The Details
The FIU-IND has sent notices under Section 13 of the Prevention of Money Laundering Act, 2002 to the following fifteen entities:
- Weex International Exchange LTD
- BLF Global Limited (Blofin)
- RezorEx
- Bitunix LLC
- DigiFinex Ltd
- Hopeful Technology Co. Ltd. (Toobit)
- Fibtc Ltd / XT Technical PTE. LTD. (XT.com)
- LAtrade Ltd (Latoken)
- Wootech Limited (WOO X)
- Marketa Trading Inc. (Pionex)
- CHN Group LLC (ChangeNow)
- SimpleSwap LTD
- FFGX Group LLC (Fixedfloat)
- UAB Clear White Technologies (WhiteBIT)
- FinSeven CZ (Guardarian)
Virtual digital asset service providers have been required to register with FIU-IND and follow anti-money laundering rules since March 2023. These obligations apply to any provider offering services such as exchanging cryptocurrencies for regular money, transferring digital assets, or storing them. The rules apply whether the provider is physically located in India or operates from abroad.
In addition to the compliance notices, the FIU-IND has directed these platforms to shut down their apps and web access under the Information Technology Act, 2000.
What this means for you
If you use any of these platforms, your access will be blocked. The government has warned that crypto products and NFTs remain unregulated and carry significant risk. If you lose money on these platforms, there is no government protection or recourse available to recover your funds.