FIU-IND Tightens Crypto Regulations: New Guidelines for VDA Entities in India

• FIU-IND updates guidelines for Virtual Digital Asset (VDA) entities in India, focusing on business operations, cybersecurity, and KYC norms.
• New rules mandate the appointment of a Principal Officer (PO) responsible for AML/CFT/CPF, reporting directly to the board with annual re-evaluation.
• VDA entities now require a Cyber Security Audit Certificate from a CERT-In empaneled auditor, covering critical risk domains.
• Guidelines clarify 'Travel Rules' for VDASPs, requiring them to maintain and transmit originator and beneficiary details for VDA transfers.
• Reporting entities must collect data on unhosted wallet transfers, monitor risks, and apply enhanced due diligence measures.

Why It Matters: FIU-IND's updated guidelines aim to enhance transparency, security, and accountability in India's VDA ecosystem.