A Virtual Asset Service Provider (VASP) is an international regulatory category created by the FATF to bring crypto exchanges, custodians, and related intermediaries under standard Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) frameworks.
In simple terms, a VASP is a business that exchanges, transfers, safeguards, or facilitates virtual assets on behalf of others. In India, businesses providing specified Virtual Digital Asset (VDA) services must register with the Financial Intelligence Unit-India (FIU-IND) under the Prevention of Money Laundering Act (PMLA), 2002, and follow KYC, record-keeping, and reporting requirements.
For anyone buying, selling, or trading crypto in India, understanding VASP registration helps in identifying platforms that operate within the country’s anti-money laundering compliance framework.
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A Virtual Asset Service Provider (VASP) is a business offering services such as crypto trading, transfers, or custody on behalf of customers.
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In March 2023, India brought specified VDA activities under the PMLA, making qualifying platforms subject to FIU-IND registration and reporting requirements.
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FIU-registered VASPs must follow applicable KYC, Anti-Money Laundering (AML), transaction monitoring, and reporting obligations.
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As of March 9, 2026, 54 VDA service providers were registered with FIU-IND, including WazirX.
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Users can check a platform’s registration status through official government disclosures and the platform’s compliance information.
What Is a VASP?
VASP (Virtual Asset Service Provider) is a category defined by the Financial Action Task Force (FATF) in October 2018 for businesses that exchange, transfer, safeguard, or provide specified financial services involving virtual assets for others. FATF introduced it to clarify which businesses should follow anti-money laundering and counter-terrorist financing standards.
What businesses qualify as VASPs?
A Virtual Asset Service Provider (VASP) is a business that provides services involving virtual assets on behalf of individuals or other businesses.
These services can include exchanging Bitcoin (BTC) for Indian Rupees (INR), trading one crypto asset for another, transferring digital assets, or providing custodial services.
How does a business qualify as a VASP?
A business may qualify as a VASP if it conducts one or more of the following activities on behalf of customers:
- Crypto-to-Fiat Exchange: Facilitating transactions between virtual assets and traditional currencies, such as INR or USD.
- Crypto-to-Crypto Exchange: Enabling users to exchange one digital asset for another, such as Bitcoin for Ethereum.
- Virtual Asset Transfers: Facilitating the movement of virtual assets between accounts or wallets on behalf of customers.
- Safekeeping and Administration: Providing custodial services or administering virtual assets or instruments that enable control over them.
- Financial Services Related to Token Offerings: Participating in or providing specified financial services connected with an issuer’s offer or sale of virtual assets.
Examples of Virtual Asset Service Providers
Common examples of VASPs include:
- Crypto Exchanges: Platforms that allow users to buy, sell, and trade crypto.
- Custodial Wallet Providers: Businesses that hold or administer digital assets on behalf of customers.
- Over-the-Counter (OTC) Trading Desks: Businesses facilitating direct virtual asset transactions for clients.
- Token Issuance Service Providers: Businesses offering qualifying financial services related to virtual asset issuance.
Whether a business qualifies as a VASP depends on the actual activities it performs.
VASP vs. VDA Service Provider: What’s the Difference?
VASP and VDA Service Provider (VDA SP) are closely related terms used in different regulatory contexts.
| Basis | VASP (Virtual Asset Service Provider) | VDA SP (Virtual Digital Asset Service Provider) |
| Terminology | Internationally recognized term used by FATF. | Commonly used in India’s regulatory framework. |
| Regulatory Framework | Defined under FATF’s global AML/CFT standards. | Covered under India’s Prevention of Money Laundering Act (PMLA). |
| Activities Covered | Crypto exchange, transfers, custody, and specified token-related services. | Specified VDA-related services, including exchange, transfers, custody, and token-related financial services. |
| Compliance Requirements | Subject to applicable AML/CFT obligations under national regulations. | Subject to applicable FIU-IND registration, KYC, record-keeping, and reporting requirements. |
| Geographical Scope | Used internationally across jurisdictions. | Used primarily in the Indian regulatory context. |
What Is FIU-IND Registration?
FIU-IND registration is a mandatory compliance requirement for businesses performing specified VDA-related activities covered under India’s PMLA framework.
On March 7, 2023, the Ministry of Finance issued a notification bringing specified virtual asset activities under the PMLA.
This brought qualifying crypto businesses within India’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework.
Under these requirements, covered VDA service providers must register with FIU-IND as reporting entities and comply with applicable obligations.
What Is FIU-IND?
The Financial Intelligence Unit-India (FIU-IND) is a government agency under the Ministry of Finance. It is responsible for receiving, processing, analyzing, and disseminating information relating to suspicious financial transactions.
In the crypto ecosystem, FIU-IND administers relevant registration, reporting, and AML/CFT compliance obligations for covered VDA service providers.
What Does Reporting Entity Mean?
A reporting entity is a business or institution subject to prescribed compliance obligations under the PMLA. For crypto platforms, these include customer identity verification, transaction record maintenance, suspicious transaction reporting, and other applicable AML/CFT requirements.
To understand how India’s broader regulatory framework is developing, read our guide on India’s crypto regulations and what investors should watch next.
Who Needs VASP Registration in India?
FIU-IND registration is mandatory for businesses conducting specified Virtual Digital Asset (VDA) activities under India’s Prevention of Money Laundering Act (PMLA). This applies to both domestic and offshore platforms serving Indian users.
- Indian Crypto Platforms
Indian crypto exchanges, custodial wallet providers, and businesses facilitating virtual asset transfers must register with FIU-IND if their activities fall under the PMLA framework. They must also comply with applicable KYC and reporting requirements.
- Offshore Crypto Platforms Serving Indian Users
Foreign crypto platforms offering covered VDA services to Indian users must also comply with FIU-IND registration requirements, regardless of their country of incorporation.
Why Is FIU Registration Important in India?
FIU-IND registration establishes compliance standards for crypto platforms in India, promoting accountability, transparency, and responsible trading practices.
- Establishes Reporting Entity Status: FIU-registered VASPs operate as reporting entities under the PMLA. They must follow Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) requirements, ensuring adherence to defined compliance standards.
- Supports KYC and Transaction Records: Registered platforms must verify customer identities through KYC and maintain transaction records. This improves accountability and supports regulatory investigations.
Learn more in our complete guide to the Re-KYC process on WazirX.
- Strengthens Transaction Monitoring: VASPs must monitor transactions and report suspicious activities to FIU-IND. These measures help identify potential financial fraud and misuse.
Read the CBI advisory on crypto P2P fraud risks to understand common threats.
- Creates Consistent Compliance Standards: FIU-IND requirements apply to qualifying Indian and offshore crypto platforms serving Indian users. This establishes common compliance expectations across registered businesses and helps users evaluate platforms.
- Aligns With Global Standards: India’s VASP framework follows principles established by the Financial Action Task Force (FATF), including customer due diligence and transaction monitoring. The FATF Travel Rule also promotes information sharing for qualifying virtual asset transfers, supporting greater transparency across the global crypto ecosystem.
FIU-Registered Crypto Exchanges in India: How to Verify?
According to a Ministry of Finance response in the Lok Sabha dated March 30, 2026, 54 VDA service providers were registered with FIU-IND as of March 9, 2026, including domestic and international crypto platforms.
Here’s how to verify a crypto exchange’s FIU-IND registration:
- Visit the Exchange’s Website: Check the About Us, Legal, or Compliance section for FIU-IND registration details.
- Identify the Registered Entity: Find the legal entity name under which the exchange operates.
- Check Government Disclosures: Visit the FIU-IND website and review available Ministry of Finance disclosures listing registered VDA service providers.
- Verify the Details: Match the exchange’s registered entity name with the official government records.
- Seek Confirmation: Contact the exchange if registration details are unclear or updated information is unavailable.
For additional checks, read our practical checklist for choosing an FIU-registered crypto exchange in India.
Is WazirX FIU-Registered?
Yes. WazirX is registered with the Financial Intelligence Unit–India (FIU-IND) as a reporting entity under the Prevention of Money Laundering Act, 2002.
WazirX’s registered entity, Zanmai Labs Pvt Ltd, appears in the Ministry of Finance’s list of FIU-registered VDA service providers released in March 2026.
As an FIU-IND-registered platform, WazirX is subject to applicable KYC, AML/CFT, transaction monitoring, record-keeping, and reporting requirements. We also maintain compliance procedures intended to identify and address potentially suspicious financial activity.
You can read more about WazirX’s approach to VDA compliance.
Best Practices for Choosing a Crypto Platform in India
FIU-IND registration is an important starting point, but users should evaluate other factors before selecting a trading platform.
Here are some considerations:
- FIU-IND Registration: Check the platform’s registration details and available official disclosures.
- KYC Process: Look for clear identity verification requirements and transparent account verification procedures.
- Account Protection: Check for features such as two-factor authentication and account activity alerts.
- Trading Features: Review available assets, trading pairs, order types, and applicable fees.
- Deposit and Withdrawal Experience: Understand supported payment methods, processing requirements, and withdrawal conditions.
- Customer Support: Look for accessible support channels and transparent grievance-resolution processes.
Combining these checks can help users make informed decisions when choosing a crypto exchange.
Final Thoughts
Virtual Asset Service Providers play an important role in making crypto trading, transfers, and custody services accessible to users.
In India, FIU-IND registration establishes compliance requirements for covered VASPs, including KYC verification, transaction monitoring, record maintenance, and reporting obligations.
For users, checking whether a crypto exchange is FIU-registered is a useful first step toward understanding its compliance status.
As India’s crypto ecosystem continues to develop, regulatory awareness and informed trading practices remain important. Before choosing a platform, review its registration details, trading features, and account protection measures.
Start your crypto trading journey with WazirX and complete your KYC to access the platform’s trading features.
Frequently Asked Questions (FAQs)
A Virtual Asset Service Provider (VASP) is a business that facilitates services involving virtual assets on behalf of users. These services include buying, selling, exchanging, transferring, and safeguarding crypto. Crypto exchanges, custodial wallet providers, and certain crypto brokers are common examples of VASPs.
FIU-IND registration is a mandatory compliance requirement for businesses providing specified virtual digital asset services in India. It brings eligible businesses under the Prevention of Money Laundering Act (PMLA), requiring them to follow Know Your Customer (KYC), transaction monitoring, record-keeping, and suspicious transaction reporting obligations.
In India, businesses offering specified virtual asset services, including crypto exchanges, custodial wallet providers, and certain brokers, must register with FIU-IND under the PMLA. This requirement also applies to foreign platforms providing covered services to Indian users. FIU-IND registration is not equivalent to a general VASP license.
A crypto exchange is a common example of a Virtual Asset Service Provider. Such platforms allow users to buy, sell, and exchange digital assets like Bitcoin and Ethereum. Businesses offering custodial wallet services or facilitating virtual asset transfers on behalf of customers may also qualify as VASPs.
WazirX is an example of a Virtual Asset Service Provider in India. It is an FIU-IND-registered crypto exchange that allows users to buy, sell, and trade digital assets. As a registered reporting entity, WazirX must comply with applicable KYC, anti-money laundering, and transaction reporting requirements under the PMLA.
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