Summary: The Financial Intelligence Unit-India (FIU-IND) has released updated anti-money laundering (AML) guidelines for the virtual digital asset (VDA) sector. Key changes include mandatory annual cybersecurity audits by CERT-In accredited professionals and stricter “Know Your Customer” (KYC) requirements, including geo-location data and OTP verification.
Business Impact: Significant. These rules formalize the “security-first” requirement for the crypto industry. For your clients in the VDA space, this increases compliance costs but provides a structured framework to build investor trust and resilience against hacks like the 2024 WazirX incident.
Why It Happened: Rising incidents of crypto-linked money laundering and high-profile exchange hacks have forced regulators to move from “taxation-only” oversight to rigorous technical auditing.
Recommended Executive Action: If your organization handles digital assets, schedule a pre-compliance audit with a CERT-In accredited partner immediately. Review your onboarding flow to ensure it captures the newly required geolocation and liveness data points.
Hashtags: #CryptoRegulation #FIU #AML #CyberAudit #VDA #CERTIn #Compliance