Crypto Unregulated in India, But FIU Registration Mandatory: MoS Finance

India's cryptocurrency landscape remains in a regulatory gray zone, with the Ministry of Finance clarifying that virtual assets are neither legal nor illegal under current law. Minister of State for Finance Pankaj Chaudhary emphasized that the question of legality for crypto platforms "does not arise as on date."

Despite this ambiguity, the Financial Intelligence Unit (FIU-IND) now mandates all VIRTUAL Asset Service Providers—including global exchanges serving Indian users—to register under anti-money laundering laws. Non-compliant platforms risk being flagged for potential enforcement actions.

The MOVE reflects India's cautious approach: avoiding outright bans while implementing financial surveillance mechanisms. Market participants await clearer guidelines as the government balances innovation concerns with financial stability risks.