Crypto major CoinDCX has become a Financial Intelligence Unit (FIU)-registered reporting entity under the new anti-money laundering laws announced by the government earlier this month.

The government had mandated that Virtual Digital Assets (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 engaging with regulatory authorities to seek guidance on compliance matters.

“This will pave the road towards increased accountability and implementation of best practices by the VDA industry. As the industry continues to evolve, we will continue building trust and transparency, and focus on educating stakeholders to make VDA and Web3 safer and compliant,” Founder and CEO Sumit Gupta said.

“CoinDCX will continue to work closely with the authorities to identify and address any potential risks associated with the use of VDAs in the future,” it said, adding that it was also the first exchange to publish proof of reserves.

The exchange serves over 15 million users and has recently forayed into offering DeFi services through Okto wallet app for users worldwide. It is backed by investors such as Pantera, Steadview Capital, Kingsway, Polychain Capital, B Capital Group, Bain Capital Ventures, Cadenza, Draper Dragon, Republic, Kindred, and Coinbase Ventures.