Liminal Custody, which provides custody and wallet services for virtual assets, announced that its Indian entity “First Answer India Technologies Private Limited” is now officially registered with the Financial Intelligence Unit (FIU) of the India With this, the entity has become the latest Web3 company to join this list along with Binance, KuCoin and WazirX, aiming to grow its ecosystem in India while complying with the regulatory framework that oversees India's crypto and Web3 sector. India mandated registration of Web3 companies with the FIU in order to make the volatile and exploitable sector safer for use.
The FIU is tasked with receiving, processing and analyzing details related to suspicious financial transactions. The body also circulates information about suspicious transactions to foreign FIUs, alerting them to possible risks.
“The registration of FIU 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 in Liminal Custody.
Financial authorities in India have been cracking down on fintech players, working independently of or alongside crypto. Regulators want to ensure that engagement with unregistered and illegally operating companies does not pose massive financial risks to India's system and citizens.
In the early months of this year, the Indian government restricted the operations of several crypto companies for failing to register with the FIU. OKX and Binance were among the companies that started facing operational struggles in India from December last year.
Between January and May this year, Kucoin and Binance emerged among the top foreign crypto players that managed to comply with the rules and secure their respective FIU registrations.
Indian exchanges like 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), for which it claims to store crypto assets seized during the investigations.
