Most of these platforms, known as virtual digital assets (cryptocurrency) service providers, have their official addresses in the Seychelles, British Virgin Islands or Cayman Islands, all tax havens. Some have Singapore or Hong Kong addresses.
The government said all VDA service providers operating in India and engaged in activities such as exchange between virtual digital assets and fiat currencies or the transfer of VDAs were required to be registered with the financial intelligence unit.
While 31 VDA service providers were registered, several offshore entities catering to Indian users had not, and were likely operating outside India’s anti-money laundering and counter financing of terrorism framework under the Prevention of Money Laundering Act, 2002. Kraken, KuCoin, Gate.io and Bitfinex were among those served notice for failure to comply with the…
