New Anti-Money Laundering Laws & CoinDCX: Now an FIU-registered Entity

As a pioneer in the crypto space, CoinDCX has been on a journey to make crypto accessible for the masses since 2018. As India’s first crypto unicorn, and being at the forefront of crypto innovations, striving towards simplifying the crypto space for the Indian crypto community has been the top goal for CoinDCX!

However, with innovation, staying compliant and educating the masses about the basics of crypto and blockchain technology has also been a strong focus for us. While Regulatory Compliance has been at the heart of our exchange, incorporating industry-best security measures to help investors safely explore the crypto space has also been the handshake that had been heavily focused on.

All things combined, has resulted in CoinDCX taking the steps towards building a compliant crypto ecosystem. 

Introduction to the New Anti-Money Laundering Laws for the Crypto Industry

In the month of March 2023, the Government of India announced a new set of laws for the Indian crypto industry, specifically pertaining to preventing money laundering in the crypto sector. According to the announcement, effective March 7, 2023 – crypto service providers (CSPs) such as exchanges, custodians & wallet providers are subjected to a new set of anti-money laundering laws in India.

These laws require strict compliance measures in order to prevent money laundering and other finance related crimes. Being non-compliance with these regulations can result in hefty penalties and even imprisonment. 

The announcement stated that the legal framework for crypto money laundering is governed by the Prevention of Money Laundering Act, 2002 (PMLA). 

Under Prevention of Money Laundering Act (PMLA), Indian crypto exchanges are required to comply with various regulatory requirements, which include:

• Know Your Customer (KYC) norms
• Anti-Money Laundering (AML) policies
• Record-keeping
• Reporting of suspicious transactions
• Appointment of a principal officer 

CoinDCX is a company registered in India and is registered as a reporting entity with FIU India, with REID VA00030982. 

Financial Intelligence Unit (FIU) is an organization under the Department of Revenue, Government of India – which collects financial intelligence about offenses under the Prevention of Money Laundering Act, 2002. 

How will Crypto Exchanges like CoinDCX Comply With New PMLA Laws?

Staying true to the goal of having regulatory compliance at the heart of our operations, CoinDCX will comply with all the PMLA laws and regulations highlighted above. In order to mandate the requirements laid out in the Anti-Money Laundering law stipulated by the Government of India, we will abide by the following measures:

1. Know Your Customer (KYC): Indian crypto exchanges are required to follow KYC norms and obtain relevant information from their customers, such as their names, address, and identification details. This information should be verified and updated regularly.
2. Anti-Money Laundering (AML) Policy: Indian crypto exchanges must have a comprehensive AML policy in place, which includes identifying and reporting of any suspicious transactions to the authorities.
3. Record Keeping: Indian crypto exchanges must maintain proper records of all transactions conducted on their platform, including the identity of the parties involved..
4. Reporting: Indian crypto exchanges are required to report any suspicious transactions to the Financial Intelligence Unit (FIU) within a prescribed time frame.
5. Principal Officer: Indian crypto exchanges are required to appoint a principal officer who will be responsible for ensuring that the exchange complies with all the regulatory requirements under the PMLA.
6. Regular Audits: Indian crypto exchanges should conduct regular internal audits to ensure compliance with the PMLA and to identify any areas of non-compliance.

Regulatory compliance lies at the heart of CoinDCX and is always our #1 priority. PMLA regulation requires all crypto service providers in India including exchanges to register with FIU.

Happy to share that @CoinDCX is an FIU-registered reporting entity now.

— Sumit Gupta (CoinDCX) (@smtgpt) March 16, 2023

Regulatory compliance lies at the heart of CoinDCX and is always our #1 priority. PMLA regulation requires all crypto service providers in India including exchanges to register with FIU.

Happy to share that @CoinDCX is an FIU-registered reporting entity now.

— Sumit Gupta (CoinDCX) (@smtgpt) March 16, 2023

Conclusion

With government regulatory bodies finally coming together to bring about rules and regulations in place, we are confident to see an explosion in the industry that has never been seen before. India has a rich talent pool that is capable of building and delivering world-class Web3 products and services to the world. A proper set of regulations will surely go a long way to ensure bad actors are weeded out to ensure that positive change can be achieved through the Web3 revolution.