Liminal Custody, a prominent provider of storage and wallet solutions for virtual assets, has declared the formal registration of its Indian counterpart, First Answer India Technologies Private Limited, with India's Financial Intelligence Unit (FIU). This step positions Liminal Custody among a distinguished cohort of Web3 companies adhering to India's rigorous regulatory standards for the crypto and Web3 sector alongside industry leaders such as Binance, KuCoin, and WazirX.
Requiring FIU registration for Web3 companies in India represents a pivotal measure aimed at enhancing security and transparency within the frequently volatile and exposed cryptocurrency realm. The FIU assumes a central role in combating financial malfeasance through the receipt, processing, and analysis of dubious financial transactions, facilitating the exchange of such information with global counterparts.
“We have been working closely with many regulatory agencies, including the FIU in India to build a cohesive framework that can help mitigate all the risks around digital assets for both - businesses as well as end users. We are incredibly proud to receive FIU registration”, said Manhar Garegrat, Country Head, India and Global Partnerships at Liminal Custody.
Over the past few months, Indian financial regulators have escalated their efforts to regulate fintech entities, particularly those involved in the cryptocurrency sector, to mitigate financial risks to the nation's economy and its people. Earlier this year, several cryptocurrency firms, including well-known global exchanges such as OKX and Binance, encountered operational limitations due to their failure to register with the FIU.
Since then, numerous international and local cryptocurrency entities have effectively managed to comply with regulatory prerequisites, obtaining their FIU registrations. Between January and May, Binance and KuCoin secured theirs, aligning with Indian exchanges CoinSwitch, WazirX, and CoinDCX in achieving official acknowledgment. By acquiring FIU registration, Liminal Custody seeks to establish itself as a reliable crypto wallet collaborator for significant institutions like the Central Bureau of Investigation (CBI). The company asserts its provision of storage services for cryptocurrency assets seized during CBI probes.