Offshore Crypto Platforms Face No Blanket Ban, Centre Clarifies

In a significant development for the burgeoning cryptocurrency landscape in India, the central government has clarified its stance on the operation of offshore crypto platforms within the country. While a complete ban is not on the cards, regulatory oversight is being intensified.

FIU-IND Registers VASPs Under PMLA

The Financial Intelligence Unit-India (FIU-IND) is actively registering Virtual Asset Service Providers (VASPs) under the Prevention of Money Laundering Act (PMLA), signaling a move towards bringing these entities under the regulatory ambit. This registration process is a crucial step in ensuring compliance and preventing illicit activities related to digital assets.

What does this mean for Indian Crypto Users?

This move implies that while offshore platforms aren’t outright prohibited, they are expected to adhere to Indian regulations, particularly concerning anti-money laundering measures. Indian users should be aware of the compliance status of the platforms they are using.

RBI Issues Warnings on Crypto Risks

While the FIU-IND focuses on compliance, the Reserve Bank of India (RBI) continues to express concerns regarding the inherent risks associated with cryptocurrencies, particularly for the general public. The RBI has consistently cautioned investors about the volatility and potential financial losses associated with these assets.

• The RBI highlights the lack of underlying value in many cryptocurrencies.
• The central bank emphasizes the potential for market manipulation.
• The RBI urges investors to exercise extreme caution.

The RBI’s warnings are a crucial reminder that investing in cryptocurrencies involves significant risks. Indian investors should conduct thorough research and seek professional advice before venturing into this volatile market.