While living in India, if you are also interested in the crypto business and you have an account on a Crypto Alternate, then immediately update your KYC (Know Your Buyer). In fact, the Financial Intelligence Unit (FIU-IN), the Government of India, has instructed the Cryptocurrency exchanges to update and strengthen its KYC process by 30 June 2025. Let us tell you that this order has been given by FIU-Ind under the Prevention of Cash Laundering Occupation (PMLA).
Monetary undersrstanding Unit-Republic of India (FIU) It has been said that crypto exchanges will have to update the data of all users, whose accounts have become older than 18 months. They have to start the KYC process again. At the same time, FIU has ordered all crypto exchanges to collect information about such accounts which can be risky. Significantly, the use of cryptocurrency has been increasing in India for some time and has been emerging as a large class investor. In such a situation, FIU has clarified that violations of rules related to crypto exchanges will not be tolerated in any way. 5 best in India Users can read about cryptocurrency exchanges here.
What is FIU-Ind in India
Actually FIU-Ind is a financial intelligence unit working under the Ministry of Finance in India. The organization investigates matters related to financial offenses and money laundering. This institution investigates suspected transactions. FIU works closely with financial intelligence units from other countries to help prevent international money laundering and terrorism financing. FIU-Ind was formed in the year 2004.
Why did FIU strict on crypto exchanges
Now the question arises that FIU Why has such a strictness suddenly increased on crypto exchanges. In fact, top officials associated with FIU-IN say that in many cases it has been seen that KYC processes were not followed properly and many exchanges. TDS (tax deducted at supply) Was violated the rules of. In fact, under PMla in India, Crypto exchanges need to deduct 1 per cent TDS on transaction of Rs 10,000. If a user wants to avoid cuts of TDS, he will have to file his ITR. But many crypto exchanges have violated the rules in this process.
Binance and bybit sent messages for KYC update
After the strictness of FIU-IN, Crypto Exchange companies like Binance and Bybit have sent a notification to update KYC to users and have sought PAN card information in India. Significantly, bybit paid a fine of Rs 9.27 lakh in the year 2023 to start its services in India, after which it will now have to work under the rules of Prevention of Cash Laundering Occupation (PMLA). In fact, in March 2023, the Finance Ministry took an important step and made the Crypto exchanges required registration with FIU-IN. Also in the budget in the year 2022 Virtual digital assets (vdas) But 30 percent tax was proposed.
Conclusion
The use of cryptocurrency in India is gradually increasing. In such a situation, the processes of the regulatory bodies of the country are becoming more tough. The new order of the FIU-Ind will force crypto exchanges to follow the KYC and PMLA rules. This will not only reduce crimes like money laundering, but will also help in controlling the financing of terrorism. Strict adherence to these rules will also increase the validity of cryptocurrency. Investors will be important to follow the safety and rules of their crypto account so that they can avoid any legal confusion.
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