WazirX takes the lead in compliance for India’s crypto exchanges

WazirX is a leading crypto exchange in India that has become increasingly popular among investors and traders since its establishment in 2018. One of the main reasons for its success is its unwavering commitment to adhering to rules and regulations, setting up internal processes, and establishing controls for compliance. In line with its mission to provide a secure and transparent platform, WazirX has taken several steps to ensure that its operations are above board.

To fulfill its commitment to transparency, WazirX took the initiative to start reporting transactions to the Financial Intelligence Unit (FIU) as early as August 2022, even though there were no laid down requirements for the same. WazirX had anticipated that virtual asset service providers would eventually be brought under the ambit of the Prevention of Money Laundering Act 2002 (PMLA), and it wanted to be proactive in complying with these regulations. By doing so, WazirX established its credibility as a responsible crypto exchange willing to go beyond the bare minimum requirements. 

On 7th March 2023, the Ministry of Finance (MOF) released a gazetted notification that brought virtual asset businesses and service providers under the purview of PMLA. This development was not unexpected, and WazirX was well-prepared to comply with these regulations. Detailed Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) guidelines were issued for Virtual Asset Service Providers (VASPs) on 10th March 2023. One of the primary requirements in these guidelines was that all VASPs register on the FIU portal as a reporting entity. 

WazirX was quick to comply with this requirement and registered as a reporting entity with the FIU. By taking this significant step, WazirX has demonstrated its commitment to providing its users with a secure and transparent platform. The inclusion of virtual asset service providers under the ambit of PMLA is a welcome development and will go a long way in ensuring that crypto exchanges operate in a regulated environment. 

WazirX has set an excellent example of how crypto exchanges can prioritize compliance and transparency to build trust with their users. By adhering to regulations proactively, WazirX has shown that it is committed not only to its own success but also to the larger goal of building a thriving crypto industry in India.

 Muthuswamy N Iyer, Head of Legal and Compliance at WazirX quotes "As a responsible crypto exchange, we at WazirX understand the importance of compliance and transparency. By proactively reporting transactions to the FIU and registering as a reporting entity, we have demonstrated our commitment to operating in a regulated environment and providing our users with a secure platform. We are proud to lead the way in compliance for India's crypto exchanges and hope that others will follow suit to build a thriving industry."