Y-Combinator-backed crypto platform Mudrex announced on Tuesday that it has been registered as a registered entity with the Financial Intelligence Unit (FIU). It also received regulatory recognition in the European Union and is now a Virtual Asset Service Provider (VASP) accredited by the Bank of Lithuania.
Bangalore and San Francisco-headquartered Mudrex has become the third crypto platform to be registered with the FIU, following WazirX and CoinDCX.
Under its notification on 7 March 2023, the Centre brought crypto service providers under the ambit of the Prevention of Money Laundering Act (PMLA), 2002. It required all such service providers to be registered with the FIU.
The Centre also mandated that virtual digital asset (VDA) service providers such as exchanges, custodians and wallet providers must comply with several regulatory requirements, including know-your-customer (KYC) norms, record-keeping, reporting of suspicious transactions, appointment of a compliance officer and engagement with regulatory authorities to seek guidance on compliance matters.
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FIU is an independent body reporting directly to the Economic Intelligence Council (EIC), which the finance minister heads. It is responsible for receiving, processing, analysing and disseminating information relating to suspect financial transactions, aiming to curb money laundering and the financing of terrorism.
"Mudrex is now India's most regulatory-compliant company. We believe that by taking these proactive steps, we are ensuring our platform's integrity, increasing trust with our users and also contributing to the broader adoption and acceptance of cryptocurrencies in the global financial system," said Edul Patel, co-founder and chief executive officer at Mudrex.
"With the evolving regulatory landscape surrounding cryptocurrencies, Mudrex places paramount importance on aligning its operations with the most stringent legal and financial compliance standards," the company said in a release.