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FIU-IND Updates Guidelines for Crypto and Virtual Digital Asset Entities
- Ripradaman R
- 2 days ago
- 2 min read
Introduction
India’s crypto regulation framework is gradually taking shape.
The Financial Intelligence Unit has issued updated guidelines for crypto and VDA entities.
This move signals stronger oversight ahead of Budget 2026.
The focus is compliance, transparency, and financial system integrity.
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What Is FIU-IND?
Financial Intelligence Unit – India is India’s central AML authority.
Its mandate includes:
Monitoring suspicious financial transactions
Enforcing anti–money laundering norms
Coordinating with domestic and global regulators
Crypto entities now fall clearly within its scope.
Who Do the New Guidelines Apply To?
The updated norms cover all Virtual Digital Asset intermediaries.
This includes:
Crypto exchanges
Custodial wallet providers
On-ramp and off-ramp platforms
Other VDA service providers operating in India
Registration and reporting are no longer optional.
Intresting read:
Key Compliance Requirements
The guidelines tighten operational standards.
Core requirements include:
Mandatory registration with FIU-IND
Strong KYC and customer due diligence
Transaction monitoring and reporting
Record retention for prescribed periods
Compliance is becoming structural, not symbolic.
Focus on AML and CFT Controls
Preventing misuse is the primary objective.
The rules emphasize:
Detection of suspicious transactions
Reporting to FIU-IND within timelines
Controls against terror financing and fraud
Crypto is being aligned with traditional financial safeguards.
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Why This Matters Before Budget 2026
Timing is strategic.
The update suggests:
Policy intent to formalise crypto markets
Reduced tolerance for regulatory arbitrage
Groundwork for future taxation and licensing clarity
Regulation is moving ahead of legislation.
What It Means for Crypto Businesses
Operating in India now demands maturity.
Implications include:
Higher compliance costs
Exit of non-compliant offshore platforms
Increased trust for institutional participation
Survival will favor serious, well-capitalised players.
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Conclusion
FIU-IND’s updated guidelines mark a decisive shift in India’s crypto approach.
The industry is moving from ambiguity to accountability.
Compliance, not speculation, will define the next phase of crypto in India.
FAQ
Q1. Are crypto exchanges required to register with FIU-IND?
Yes, registration is mandatory under the updated guidelines.
Q2. Do these rules apply to foreign crypto platforms?
Yes, if they offer services to Indian users.
Q3. Is crypto now fully legal in India?
Crypto is regulated for compliance, but legal clarity is still evolving.
Q4. What happens if an entity does not comply?
Non-compliance can lead to penalties, restrictions, or operational bans.
Q5. Will Budget 2026 bring more crypto clarity?
The regulatory direction suggests stronger formalisation ahead.
Citations
Financial Intelligence Unit – India (FIU-IND)
Ministry of Finance, Government of India
Reserve Bank of India (RBI)
World Economic Forum – Digital Assets
International Monetary Fund (IMF)
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