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Corporate Laws Central Ministry of Finance Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful

FIU issues 3rd Revision of Circular for Registration of Virtual Digital Asset Service Providers (VDA SPs) in FIU India as Reporting Entity (RE)

15-Sep-2025 | F.No. 9-8/2023/COMPL/FIU-IND-Pt-II

Financial Intelligence Unit - India (FIU-IND) has issued 3rd Revision of Circular for Registration of Virtual Digital Asset Service Providers (VDA SPs) in FIU India as Reporting Entity (RE) with effect from 15th September 2025. Key Highlights of the Circular: 1. Mandatory Registration - VDA SPs such as exchanges, custodians, and wallet providers, must register with the FIU-IND as REs under the Prevention of Money Laundering Act (PMLA), 2002. 2. Scope of Activities - Exchange of Virtual Digital Assets (VDAs) with fiat or other VDAs, transfer, safekeeping, administration, and related financial services. 3. Compliance Requirements - VDA SPs must follow Prevention of Money Laundering Act (PMLA) rules: Customer Due Diligence, record keeping, employee training, suspicious transaction reporting, and internal controls. 4. Registration - In-person meeting with FIU-IND (attended by Designated Director and Principal Officer). Entities must submit incorporation documents, financials, Goods and Services Tax (GST) and Income Tax (IT) returns, ownership details, agreements, cybersecurity audit certificate, and Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) compliance proof. 5. Demonstration of Compliance Systems - Entities must provide a live demo of their AML/CFT systems, including KYC, transaction monitoring, and blockchain analysis. 6. Approval - Registration is completed through the Financial Intelligence Network (FINNet) 2.0 Portal, followed by FIU-IND approval. Non-compliance may lead to rejection or cancellation. For more information, please refer to the attached circular.

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