Liminal Custody, which offers storage and wallet services for virtual assets, has 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 became the latest Web3 company to join this list alongside Binance, KuCoin and WazirX – aiming to develop its ecosystem in India while complying with the regulatory framework overseeing India’s crypto and Web3 sectors. India has mandated registration of Web3 companies with the FIU to make the otherwise volatile and exploited sector safer to use.
The FIU is tasked with receiving, processing and analyzing details related to suspicious financial transactions. The body also forwards information on suspicious transactions to foreign FIUs, alerting them to potential risks.
“The registration of FIU significantly enhances our ability to serve institutional clients across India, giving them the peace of mind and regulatory compliance they deserve,” said Manhar Garegrat, Country Head for India and Global Partnerships at Liminal Custody.
India’s financial authorities are cracking down on fintech players that operate independently of or with crypto. Regulators want to ensure that collaborations with unregistered and illegally operating companies do not pose major financial risks to the Indian system and citizens.
In the first months of this year, the Indian government restricted the operation of several crypto companies because they did not register with the FIU. OKX and Binance were among the companies that started facing operational issues in India since December last year.
Between January and May of this year, Kucoin and Binance appeared among the best foreign crypto players who managed to comply with the rules and secure their registrations with the FIU.
Indian exchanges such as CoinSwitch, WazirX and CoinDCX are other companies that have secured this license.
Now that Liminal Custody has registered with the FIU, it wants to establish itself as a trusted crypto wallet partner for institutions like the Central Bureau of Investigation (CBI), which it claims stores crypto assets seized during investigations.
