Projects like yours secured a Crypto Licenses with Rengangyongsheng

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A perfect fit for our business

I highly recommend Legal to any entrepreneur or business seeking top-notch services for their company formation.

Tom

Best for Crypto Licenses

Best company for Crypto Licenses! Kudos to the team for making the incorporation of our company really smooth

Charlotte

Fast and Reliable

Quick set-up and straightforward process. It was a smooth process, we are happy to have chosen Rengang as our Partner for incorporations, globally.

‌Daniel

Highly recommended!

They are undoubtedly top-level experts when it comes to licensing and registrations in the crypto and web3 industry. Highly recommend!

James

Excels at adapting to challenges

Rengang excels at adapting to challenges and demonstrates a perfect understanding of our business needs.

Alexander

A fruitful cooperation

As a result of the fruitful cooperation with Rengang, Yellow Card obtained a VASP registration, fast and without any legal complications.

Jack

Regulatory overview: Financial Intelligence Unit India (FIU-IND) and PMLA framework

The Financial Intelligence Unit India operates under the Ministry of Finance as the primary regulatory authority for virtual digital asset service providers. Through the March 7, 2023 notification, the prevention of money laundering act brought all VDASPs under comprehensive anti money laundering oversight. And as this framework is a requirement to offer crypto assets related services in India, it is not limited to Indian companies, making it available to foreign entities.

Section 2(1)(wa) of the Money Laundering Act 2002 specifically defines virtual asset service providers as reporting entities, establishing mandatory compliance obligations for any entity offering virtual digital asset services to Indian market participants. Registered VASPs are tasked with conducting customer due diligence and maintaining transaction records for five years as part of compliance. Entities must file Suspicious Transaction Reports (STRs) and submit high-value transaction data to the FIU-IND. As part of the registration procedure, applicants must create an account on FIU IND’s FINnet Gateway platform through the official FIU IND website. This regulatory framework aligns India with international standards set by the financial action task force.

FIU-IND Official Website
Prevention of Money Laundering Act Documentation
VASP Registration Guidelines

The registration framework covers diverse virtual asset service providers including:

Crypto exchanges facilitating virtual digital asset trading
Wallet providers offering custody solutions for virtual assets
NFT platforms enabling governance tokens and digital collectible transactions
VDA service providers offering institutional services for virtual digital assets
This comprehensive coverage ensures that all entities handling virtual digital assets operate within India’s regulatory compliance framework, providing market participants with enhanced financial transparency and protection against illicit financial activities.

Compliance with the Indian FIU rules reduces exposure to regulatory risks associated with money laundering and terrorist financing. Unregistered entities are at a higher risk of being exploited by criminals, leading to potential involvement in money laundering and terror financing scandals.

Obtaining a crypto license in India provides foreign virtual asset service providers with significant operational and competitive advantages in the rapidly evolving industry.

Recognized by banks and financial institutions mean a significantly higher likeliness of being green lighted in the process of negotiating the opening of a corporate account for your operations. VDA Service Providers, by demonstrating their soundness to the Indian regulator, shows that its operations are legal and do not incur the level of risk of non-regulated crypto companies.
Accessible requirements for registration and compliance. The regulatory framework is focused on preventing financial crimes and therefore rely on the Financial Action Task Force’s recommendations (FATF). This means fairly standard compliance requirements, that are easily fulfilled with the assistance of a seasoned legal partner such as Rengang.
Trustworthiness among your customers, as the majority of crypto assets users prefer dealing with registered virtual asset service providers. The registration certificate demonstrates commitment to regulatory compliance and financial transparency, significantly enhancing market credibility. Transparency and trust are facilitated by FIU registration as it signals compliance with regulatory standards to clients and stakeholders.
Stable jurisdiction and framework. Registered virtual digital asset service providers in India benefit from regulatory clarity, reducing business risks associated with changing compliance requirements. This stability enables long-term strategic planning and sustainable growth.
Cheap and cost-effective, as there are no application fees, no renewal fees, and minimal costs relative to AML-KYC compliance. The process also doesn’t require the deposit and maintenance of a defined authorized share capital. The Indian framework is one of the most competitive out there in terms of costs.

What are the application requirements for a foreign Indian crypto license

Successfully obtaining reporting entity status requires meeting specific regulatory requirements designed to ensure compliance with anti money laundering standards and effective regulatory oversight.

Corporate entity requirements: Virtual asset service providers must establish either an Indian company or demonstrate offshore entity compliance when serving the Indian market;
Principal officer appointment: The Prevention of Money Laundering Act mandates appointment of a designated director and a principal officer responsible for ensuring compliance with the FIU IND regulations. This individual oversees anti money laundering procedures, suspicious transaction reporting, and ongoing regulatory compliance.
AML/KYC policy implementation: Comprehensive AML-KYC policies must address customer due diligence, suspicious transaction identification, and compliance with CFT guidelines. These policies should align with the FATF’s recommendations and enable effective combat money laundering operations.
Technology infrastructure standards: Crypto businesses require robust transaction monitoring systems, secure record-keeping infrastructure, and cybersecurity measures protecting customer funds and transaction data. These systems must support transaction reporting systems and regulatory reporting requirements.
Additional compliance elements: No prior virtual asset experience is required for registration, though demonstrating understanding of regulatory compliance and risk management enhances application success. Entities must classify as reporting entities under relevant provisions of the prevention of money laundering act.

Rengang’s expertise in India crypto company registration ensures your virtual digital asset business meets all regulatory requirements efficiently and effectively.

What is the step-by-step registration process of a VDA Service Provider in India?

The registration process involves four distinct stages, each with specific deliverables and timelines for achieving reporting entity status.

STAGE1 2-3 weeks

Stage 1 – Entity Preparation

Company formation or offshore entity compliance verification, principal officer appointment, and initial anti money laundering policy development. This stage establishes the corporate foundation necessary for virtual asset service provider operations.

Output: Established corporate entity with appointed principal officer

STAGE2 3-4 weeks

Stage 2 – Documentation & Application
FINnet Gateway account creation, comprehensive document submission including AML policies, technology infrastructure verification, and compliance system implementation. This stage prepares all materials required for FIU IND regulations compliance.

Output: Complete application package with supporting documentation

STAGE3 2-4 weeks

Stage 3 – FIU-IND Review

Authority verification of submitted documentation, principal officer background checks, and compliance infrastructure assessment. The Indian regulatory authorities conducts thorough review to ensure regulatory compliance standards.

Output: Authority approval and verification completion

STAGE4 1 week

Stage 4 – Registration Completion

Final approval processing and reporting entity status activation. Virtual digital asset service providers receive confirmation of successful registration and begin operational compliance obligations.

Output: Active reporting entity status and registration certificate

STAGE5 from 3 weeks

Stage 5 – Banking options for a VASP registered in India

With Rengang’s assistance, it is possible after VASP registration to open a corporate account for your operations.

Output: Opening of a corporate account.

Crypto Licenses in India