CoinDCX becomes ‘FIU-Registered Reporting Entity’ to comply with new PMLA regulations

Crypto Coins

CoinDCX, India’s leading and most valued crypto company, today announced that it has become a Financial Intelligence Unit (FIU)-registered reporting entity under the new anti-money laundering laws announced by the Government of India in March 2023.

According to the Government’s notification, Virtual Digital Assets (VDA) service providers such as exchanges, custodians and wallet providers are required to comply with various regulatory requirements which include Know Your Customer (KYC) norms, record-keeping, reporting of suspicious transactions, the appointment of a compliance officer and engaging with regulatory authorities to seek guidance on compliance matters.

Sumit Gupta, Founder and CEO of CoinDCX said, “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.”

As a pioneer in the VDA space, CoinDCX has been on a journey to make VDAs accessible for the masses since 2018. Innovation, staying compliant and educating the masses about the basics of VDA and blockchain technology have also been a strong focus area for the company. CoinDCX was the first exchange to publish proof of reserves and its quick response to the FIU-Registered Reporting Entity requirement demonstrates its unwavering commitment to compliance and regulatory clarity. The company will continue to follow KYC norms and abide by the law of land by obtaining relevant information from their customers, maintain proper records of all transactions conducted on their platform, report any suspicious transactions to the FIU within a prescribed time frame, and appoint a compliance officer responsible to ensure compliance with all regulatory requirements under the PMLA. 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.

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