FIU'S IMPACT ON INDIAN CRYPTO EXCHANGES

Why in the News?

Financial Intelligence Unit’s actions against foreign crypto providers expected to boost Indian exchanges.
Anticipated shift from global exchanges to FIU-compliant Indian platforms due to regulatory compliance.

Source: Reasearch Gate

About Financial Intelligence Unit – India (FIU-IND):

FIU-IND operates under the Department of Revenue, Government of India.
Its primary function is to gather financial intelligence related to offenses under the Prevention of Money Laundering Act, 2002.
Established in November 2004, FIU-IND directly reports to the Economic Intelligence Council (EIC).
The EIC is headed by the Finance Minister, indicating its high-level association with economic intelligence matters.

About Crypto Currency

Cryptocurrency is a digital or virtual currency utilizing cryptography for security.
It operates in a decentralized manner, free from government or institutional control.
Transactions are recorded on a public digital ledger known as blockchain.
Cryptocurrency acquisition can occur through “mining,” involving solving mathematical equations to validate transactions.

Blockchain Technology

· Blockchain is a decentralized digital ledger recording transactions across a computer network.

· Each block contains multiple transactions, and every new transaction updates all participants’ ledgers.

· Decentralization ensures no single entity can alter or delete past transactions, ensuring security and transparency.

· While foundational for cryptocurrencies like Bitcoin, blockchain has diverse potential applications beyond digital currencies.

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