Industry Leaders Emphasize Compliance for Digital Asset Growth

Dilip Chenoy, Chairman, Bharat Web3 Association, said:
We, at BWA, believe that a clear and well-defined compliance framework plays an essential role in ensuring the responsible growth of the Web3 industry in India. We call upon all industry participants to strictly adhere to laws related to anti-money laundering (AML) and combating the financing of terrorism (CFT).
FIU-IND has emphasized that the compliance framework under the Prevention of Money Laundering Act (PMLA) applies to Virtual Digital Asset Service Providers (VDA SPs) serving Indian users, regardless of their domicile. The obligations are activity-based rather than dependent on physical presence in India, highlighting the objective to track and trace fraudulent activities effectively.
BWA strives to serve as a collaborative platform for industry stakeholders, policymakers, and regulators to ensure a compliant ecosystem for VDASPs. We would like to extend our gratitude to FIU-IND for their guidance and collaboration opportunities, and we are committed to setting compliance standards to create a safer environment for the Web3 and VDA sector in India.
 
Manhar Garegrat, Country Head India & Global Partnerships, Liminal Custody, said:
The developments we are observing with FIU-IND related to Binance are very organic and are a significant pointer towards India's progress on regulating the digital assets markets in India. A common regulation for all stakeholders and businesses - local and global - would ensure a level playing field for industry players and would provide equal growth opportunities to all the relevant stakeholders of the industry.
Since India is a lucrative market for global brands with a large representation of the young and ambitious demographic along with an increasing set of seasoned investors, it becomes highly critical for regulators to protect the interests of users and consumers in every sector. Alongside the massive growth ETFs are seeing in the global investments space, the digital asset sector continues to grow significantly as well. According to a research report, India is one of the top countries in terms of digital assets ownership. In such a large digital asset market, it is imperative to implement a regulatory framework for the protection of user funds and for providing a friendly environment for businesses.
At Liminal, we have been at the forefront of adapting regulatory policies and acquiring necessary licenses for our operations in APAC & MENA, with a deeper focus on India and the UAE. Liminal recently became the first digital asset custodian to achieve FIU-IND compliance. Liminal also received final approval from Financial Services Permission (FSP) from the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA). The license grants Liminal the ability to operate as a regulated custodian within the Middle East, a rapidly growing financial hub.

Shivam Thakral, CEO of BuyUcoin, India’s second-longest-running digital asset exchange, said:
This significant penalty is a clear indication of the increasing scrutiny and regulation in the digital asset space. It's essential to stay informed and aware of such developments to navigate this evolving landscape successfully. I believe that the regulations are getting more organised for crypto currency exchanges, globally. The need for compliance is critical for user protection and to conduct business in a fearless environment. Sustained efforts by FIU-IND will lead to a fertile ground for Web3 businesses to grow and enable India to become a $1 trillion digital economy.
Virtual Digital Asset service providers (VASPs) in India must collaborate to create a growth-oriented ecosystem for the digital asset industry. I strongly believe that constructive dialogue between the regulators and industry players will lead to a more mature and pro-consumer digital asset market in India.