Aniket Ghosh Comments on FIU-IND Crackdown on Crypto and VDA Service Providers

Commenting on the Financial Intelligence Unit–India’s (FIU-IND) recent action against 15 crypto and virtual digital asset (VDA) service providers for alleged non-compliance with the Prevention of Money Laundering Act, 2002 (PMLA), Aniket Ghosh highlighted the wider implications of the regulatory action for offshore crypto exchanges serving Indian users.

Aniket noted that FIU-IND has consistently adopted an activity-based approach, rather than determining applicability of the reporting framework solely by reference to an entity’s place of incorporation. Accordingly, offshore exchanges that provide services to Indian users may come within the Indian reporting framework irrespective of where they are incorporated.

“FIU-IND has always looked at the activity rather than the place of incorporation, so an offshore exchange serving Indian users comes within the reporting framework wherever it is based,” said Aniket. He further highlighted that, alongside the notice issued under Section 13 of the PMLA, FIU-IND has directed the removal of the concerned apps and URLs under Section 79(3)(b) of the Information Technology Act, 2000, a measure that has a direct impact on user access to these platforms.

Aniket’s comments underline the increasing regulatory focus on VDA service providers with Indian users and the importance of understanding the compliance obligations that may arise from conducting activities involving the Indian market, regardless of the jurisdiction in which a platform is incorporated.

Read the full article in Moneycontrol.

Last Updated on 10 September, 2026