Fiu Financial News

Financial Intelligence Unit has slapped a penalty of Rs 18.82 crore on one of the world's largest crypto exchange Binance for alleged contravention of the country's anti-money laundering law. The federal agency issued an order Thursday charging the exchange with «dereliction of duty» as a reporting entity, with its operations that of a Virtual Digital Asset Service Provider, under the Prevention of Money Laundering Act (PMLA). The summary order accessed by PTI said Binance was first issued a notice in December last year since it operated in India and provided services to Indian clients.

Mudrex, the globally renowned crypto investment platform, witnessed a surge of $1 million in crypto deposits from prominent exchanges, including Binance. This surge comes in response to the Financial Intelligence Unit's (FIU) warning to nine international crypto exchanges for non-compliance with anti-money laundering laws. «In the wake of the FIU’s directives, Mudrex saw an influx of crypto deposits. Among the depositors, a majority have invested amounts exceeding $1000, showcasing the platform's appeal to both seasoned investors and newcomers alike,» Mudrex stated in a release. Mudrex successfully onboarding over 10,000 new users in the past few days, who were drawn to the platform for its user-friendly interface, seamless experience, and the unique advantage of zero fees on crypto deposits, Mudrex said. Breaking down the user demographics, Mudrex reported that 60% of the new users hail from Tier 1 regions, while 40% belong to Tier 2 locations. This diverse user base underscores Mudrex's widespread global acceptance and its ability to cater to the needs of investors across different geographies, the crypto platform stated.

cryptocurrency exchanges are recording higher trading volumes, deposits, and user registrations following Financial Intelligence Unit's (FIU’s) decision on December 28, 2022, to issue compliance show-cause notices to nine global crypto exchanges along with a request to the IT ministry to block their URLs for not adhering to Indian regulatory norms. Leading Indian crypto exchange Coin DCX has recorded a sharp increase in deposits post-FIU's action. “CoinDCX witnesses a phenomenal 2000% surge in crypto deposits as investors prioritise compliance and security. The fact that CoinDCX is the first FIU-registered entity and ISO-certified is working for us. We have enabled crypto deposits, and the process of transferring virtual digital assets (VDAs) from other platforms to CoinDCX is straightforward and hassle-free,” said Sumit Gupta, co-founder & CEO of CoinDCX, which has over 1.4 crore users on its platform currently. “Even our signups have gone up by 2X.” Another prominent crypto exchange, CoinSwitch, witnessed a jump in trading volumes. It also reinstated crypto deposits on Thursday, a service which it had suspended last year.

crypto landscape in India, the Financial Intelligence Unit (FIU) India has issued a critical notice to offshore entities, signalling a significant stride in regulatory measures within the sector. Particularly directed at major exchanges like Binance, KuCoin, Kraken and others, this notice has garnered attention prompting discussions on compliance and potential repercussions. Edul Patel, the Founder and CEO of Mudrex, in an exclusive conversation with the EconomicTimes.com offered detailed insights into the implications of FIU’s directive of issuing show cause notice to offshore entities operating within India's rapidly expanding cryptocurrency sector. He emphasised the ramifications of this move on the industry's regulatory landscape and its potential impact on offshore exchanges and the Indian crypto users. Here are some key takeaways and insights shared by him during the conversation. To watch the full conversation, click here.

Mudrex, a Y-Combinator-backed crypto platform, has recently announced its registration as a recognized entity with the Financial Intelligence Unit (FIU). Since the announcement of FIU registration, Mudrex has recorded a twofold increase in user growth on its platform. «Mudrex's platform has experienced a surge in user adoption, attributed to the FIU registration coinciding with a bullish market. Since the announcement of FIU registration in September, we have observed a twofold increase in user growth on our platform», said Edul Patel, CEO & Co-founder of Mudrex. In a notable development for the Indian crypto space, Mudrex became the third platform to secure FIU registration, following WazirX and CoinDCX. This move aligns with the regulatory changes implemented by the Indian government on March 7, 2023, which brought crypto service providers under the ambit of the Prevention of Money Laundering Act (PMLA), 2002. Compliance with the FIU is now a requirement for all crypto service providers, including exchanges, custodians, and wallet providers, necessitating adherence to various regulatory norms such as KYC procedures, record-keeping, reporting of suspicious transactions, appointment of a compliance officer, and engagement with regulatory authorities for guidance on compliance matters.

Virtual Digital Assets (VDA) service providers, including WazirX, Coin DCX and Coinswitch, have registered themselves with the Financial Intelligence Unit-India (FIU-IND), Finance Ministry said on Monday. The Finance Ministry in March had said entities dealing in VDAs, crypto exchanges and intermediaries would be considered «reporting entity» under the Prevention of money laundering Act (PMLA). Accordingly, crypto exchanges and intermediaries dealing with VDAs were required to perform KYC of their clients and users of the platform.

New Delhi: The government has recently issued an order under the Prevention of Money Laundering Act (PMLA) to enable the Director of Financial Intelligence Unit-India (FIU) to send various reports to Goods and Services Tax Network (GSTN), the company that processes GST returns, minister of state for finance Pankaj Chaudhary informed the Lok Sabha on Monday. Chaudhary said in a written reply that FIU is enabled to share reports like cash transaction report and suspicious transaction report to GSTN for making them available to GST authorities, where such reports are found relevant for GST evasion.

Financial Intelligence Unit (FIU) will send reports, including that of suspicious and high-value cash transactions, to GST Network (GSTN) if there is a case of GST evasion. Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha Prevention of Money Laundering Act (PMLA) aims to prevent money-laundering and to provide for confiscation of property derived from, or involved in, money-laundering.