- FATF welcomes India’s progress in controlling money laundering.
- Gaps in cryptocurrency regulation are flagged as a potential risk.
- Binance returns to Indian market, raising regulatory concerns.
The Financial Action Task Force (FATF) has welcomed India’s progress in combating money laundering, highlighting the country’s success in seizing criminal assets and curbing illicit financial flows.
However, the agency also raised concerns about the lack of strict oversight in India’s growing crypto sector, warning that it could be a significant vulnerability.
The FATF report states that the implementation of preventive measures by the non-financial sector and virtual asset service providers (VASPs), as well as the supervision of these sectors, are still in their early stages.
Although India has made progress in aligning its financial intelligence and law enforcement agencies with global standards, gaps in VASP regulation persist, creating potential vulnerabilities.
The report also acknowledges India’s improved ability to identify money laundering and terrorist financing risks, as well as its efforts to seize assets linked to criminal activities.
However, delays in processing these cases, as well as a significant backlog of trials, continue to hamper overall progress.
The issue of cryptocurrency regulation has gained increased attention following Binance’s recent return to the Indian market.
The world’s largest cryptocurrency exchange has resumed operations after registering with India’s Financial Intelligence Unit (FIU), a key compliance requirement.
Join the community to receive our latest stories and updates
While this is seen as a step forward, the FATF report highlights that stricter oversight of the cryptocurrency sector is urgently needed to prevent financial crime.
