{"id":8130,"date":"2023-03-09T13:01:31","date_gmt":"2023-03-09T13:01:31","guid":{"rendered":"https:\/\/signdesk.com\/in\/?p=8130"},"modified":"2025-10-09T07:18:50","modified_gmt":"2025-10-09T12:48:50","slug":"crypto-kyc-is-mandatory-for-intermediaries-under-pmla","status":"publish","type":"post","link":"https:\/\/melento.ai\/en-in\/blog\/crypto-kyc-is-mandatory-for-intermediaries-under-pmla","title":{"rendered":"Crypto KYC is now mandatory for intermediaries under PMLA"},"content":{"rendered":"

Introduction<\/strong><\/span><\/h2>\n

The central government has recently brought crypto exchanges, wallets & intermediaries under the purview of the Prevention of Money Laundering Act or PMLA 2002.<\/p>\n

Any entity involved in the transfer, exchange, conversion, safekeeping, administration, or servicing of virtual digital assets will now be considered a \u201cReporting Entity\u201d under the PMLA guidelines.<\/p>\n

This means that crypto exchanges & other Virtual Asset Service Providers (VASPs) must adhere to certain ID verification, record-keeping, transaction monitoring, and reporting protocols.<\/p>\n

Specifically, VASPs must implement workflows for digital KYC verification<\/a> <\/span>and report suspicious incidents to the FIU (Financial Intelligence Unit).<\/p>\n

This is a major move in formalizing the crypto economy and bringing virtual assets further into the fold for trading, speculation & investment.<\/p>\n

Tight anti-money laundering<\/a> (AML) protocols will help prevent financial crime and illicit activities undertaken with virtual currencies and serve to bring in increased interest and investment in these assets.<\/p>\n

PMLA For Virtual Digital Assets – Key Takeaways\u00a0<\/strong><\/span><\/h2>\n

According to the central government\u2019s\u00a0notification in the extraordinary gazette<\/a>,<\/span> entities dealing with virtual assets will be reclassified as Reporting Entities. These will include crypto entities involved in the following:<\/p>\n