FIU-IND Acts Against 25 Offshore VDA Service Providers

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  • Last Updated on 4 October, 2025

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FIU-IND notices to offshore VDA SPs

Press Release; Dated: 01.10.2025

1. Introduction

The Financial Intelligence Unit – India (FIU-IND), the national agency responsible for monitoring financial transactions and combating money laundering, has taken regulatory action against several offshore Virtual Digital Asset Service Providers (VDA SPs). These measures highlight the government’s efforts to strengthen compliance within the rapidly growing digital asset sector and safeguard users from potential risks.

2. Action Against Offshore VDA SPs

FIU-IND has issued formal notices to 25 offshore VDA SPs under Section 13 of the Prevention of Money Laundering Act, 2002 (PMLA). The notices cite non-compliance with regulatory requirements, including failure to register with FIU-IND. This step underscores the government’s zero-tolerance approach to money laundering risks in the digital asset ecosystem.

3. Takedown of Unregistered Platforms

In addition to issuing notices, FIU-IND has also directed the takedown of applications and URLs belonging to these unregistered VDA SPs. These directions, issued under Section 79(3)(b) of the Information Technology Act, 2000, aim to prevent unregulated offshore platforms from offering services to Indian users. By blocking access, authorities seek to protect investors from using unauthorized and potentially unsafe platforms.

4. Status of Registrations and Compliance

So far, 50 VDA SPs have successfully registered with FIU-IND, indicating growing compliance within the sector. However, the continued presence of unregistered entities poses significant challenges to regulatory enforcement. The latest action is expected to encourage other offshore and domestic players to regularize their operations in accordance with Indian laws.

5. Conclusion

In conclusion, FIU-IND’s actions against non-compliant offshore VDA SPs reflect India’s determination to regulate the digital asset industry under existing anti-money laundering and IT frameworks. Users are once again cautioned that cryptocurrency products and NFTs remain unregulated and inherently risky. Investors are advised to exercise due diligence, engage only with registered platforms, and remain aware of the potential risks associated with digital assets.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied