Liminal Custody, a leading provider of storage and wallet services for virtual assets, has announced the official registration of its Indian entity, First Answer India Technologies Private Limited, with the country's Financial Intelligence Unit (FIU). This move places Liminal Custody among a select group of Web3 firms operating in compliance with India's stringent regulatory framework for the crypto and Web3 sector, joining industry giants like Binance, KuCoin, and WazirX.
India mandated FIU registration for Web3 firms as a crucial step towards bolstering security and transparency in the often volatile and vulnerable cryptocurrency landscape. The FIU plays a pivotal role in combatting financial crime by receiving, processing, and analysing suspicious financial transactions, and sharing this information with international counterparts.
“We have been working closely with many regulatory agencies, including the FIU in India to build a cohesive framework that can help mitigate all the risks around digital assets for both - businesses as well as end users. We are incredibly proud to receive FIU registration,” said Manhar Garegrat, Country Head, India and Global Partnerships at Liminal Custody.
In recent months, Indian financial authorities have intensified their crackdown on fintech players, including those operating within the crypto space, to mitigate financial risks to the country's system and citizens. Several crypto firms faced operational restrictions earlier this year for failing to register with the FIU, including prominent international exchanges like OKX and Binance.
Since then, several foreign and domestic crypto players have successfully navigated the regulatory requirements, securing their FIU registrations. Binance and KuCoin obtained theirs between January and May, joining Indian exchanges CoinSwitch, WazirX, and CoinDCX in gaining official recognition.
With its FIU registration, Liminal Custody aims to position itself as a trusted crypto wallet partner for key institutions, such as the Central Bureau of Investigation (CBI). The company already claims to provide storage for crypto assets seized during CBI investigations.