Liminal Custody, that offers storage and wallet services for virtual assets, announced that its Indian entity ‘First Answer India Technologies Private Limited’ is now officially registered with India’s Financial Intelligence Unit (FIU). With this, the entity has become the latest Web3 firm to have joined this list alongside Binance, KuCoin, and WazirX – aiming at growing its ecosystem in India while complying with the regulatory framework that oversees India’s crypto and Web3 sector. India mandated registration for Web3 firms with the FIU in order to make the otherwise volatile and exploitable sector safer for use.
The FIU is tasked with receiving, processing, and analysing details related to suspicious financial transactions. The body also circulates information on suspicious transactions to foreign FIUs, alerting them of potential risks.
“The FIU registration significantly enhances our ability to serve institutional clients across India, providing them with the peace of mind and regulatory compliance they deserve,” said Manhar Garegrat, Country Head, India and Global Partnerships at Liminal Custody.
The financial authorities of India have been cracking down on fintech players, working independent of crypto or with it included. The regulators wish to ensure that engaging with unregistered and illegally operating firms do not pose massive financial risks to India’s system and citizens.
In the earlier months of this year, the Indian government restricted the operations of several crypto firms for not having registered with the FIU. OKX and Binance were among companies that started facing operational struggles in India starting December last year.
Between January and May this year Kucoin and Binance emerged among top foreign crypto players who managed to comply with the rules and secure their respective FIU registrations.
Indian exchanges like CoinSwitch, WazirX, and CoinDCX are other firms that have secured this licence.
Now that Liminal Custody has registered with the FIU, it wishes to establish itself as a trusted crypto wallet partner for institutions like the Central Bureau of Investigation (CBI), for which it claims to store crypto assets seized during investigations.