FAST READ
- FIU-IND issued non-compliance notices to 15 VDA service providers.
- Action was taken under Section 13 of the PMLA, 2002.
- VDA service providers were brought under India's AML/CFT framework in March 2023.
WHY IN NEWS
- FIU-IND issued notices on 9 September 2026 to 15 virtual digital asset service providers for PMLA non-compliance and initiated takedown action for public access.
- The development highlights activity-based AML regulation of offshore and onshore crypto intermediaries.
TOP DATA & FACTS
- Notices issued: 15 VDA service providers.
- Notice date: 9 September 2026.
- Legal provision for non-compliance notices: Section 13, PMLA 2002.
- VDA SPs entered AML/CFT framework: March 2023.
- PMLA enactment year: 2002.
- IT Act relevant to takedown: Section 79(3)(b).
- Intermediary Rules referenced: 2025 amendment.
- Regulation applies to both offshore and onshore providers serving India.
- Core covered activity 1: VDA-fiat exchange.
- Core covered activity 2: VDA transfer.
- Core covered activity 3: safekeeping/administration of VDAs.
- Required status: registration with FIU-IND as Reporting Entity.
- Major compliance duties include at least 3 areas: reporting, record keeping and AML controls.
- Physical presence in India is not required for obligations to apply.
- Listed providers included Weex, Blofin, Bitunix, DigiFinex and WhiteBIT.
- Public-access takedown notices covered applications/URLs of non-compliant entities.
PRELIMS
- FIU-IND is India's central financial-intelligence unit.
- VDA regulation under PMLA is activity-based and can apply to offshore providers serving Indian users.
- AML compliance is distinct from guaranteeing investment safety or price stability.
QUICK REVISION
- Notices issued: 15 VDA service providers.
- Notice date: 9 September 2026.
- Legal provision for non-compliance notices: Section 13, PMLA 2002.
- VDA SPs entered AML/CFT framework: March 2023.
- PMLA enactment year: 2002.
- IT Act relevant to takedown: Section 79(3)(b).
- Intermediary Rules referenced: 2025 amendment.
- Regulation applies to both offshore and onshore providers serving India.