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ARTICLE · 23 MAY 2023

Know Your (Crypto) Customer – New KYC Rules In Town!

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Roughly 7% Indians own crypto-assets (aka Virtual Digital Assets). Yet, until recently, India did not have regulatory tools to identify crypto-owners or monitor their transactions.

IndiaTechnology
Ikigai Law
Ikigai Law
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A dissection of the government notification imposing KYC/AML/CFT obligations on crypto-businesses in India.

Roughly 7% Indians own crypto-assets (aka Virtual Digital Assets). Yet, until recently, India did not have regulatory tools to identify crypto-owners or monitor their transactions. Earlier this month, the Ministry of Finance (MoF) changed this. It issued a notification which brought entities dealing in 'Virtual Digital Assets' (VDA), under the purview of India's money laundering legislation – the Prevention of Money Laundering Act 2002 (PMLA). With this change, crypto-businesses are subject to an entirely new compliance universe

The notification is straightforward. It lists five crypto-related activities that make businesses a 'reporting entity' under the PMLA:

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