Central KYC Access Set to Transform Virtual Digital Asset Ecosystem
Delhi, 13th April, 2026:
With India’s crypto ecosystem growing rapidly, the importance of strong compliance systems has never been greater. One key piece of this puzzle is access to the Central KYC (CKYC) Registry. Amendments under the Prevention of Money Laundering Act, 2002 (PMLA) have brought Virtual Digital Asset (VDA) service providers within the category of “reporting entities.” This means they must now follow stringent KYC procedures, maintain detailed records, and report suspicious transactions to the Financial Intelligence Unit–India (FIU-IND).
To keep pace with evolving developments and address system inconsistencies, FIU-IND has updated the guidelines with more stringent onboarding processes. Against this backdrop, access to CKYC becomes essential.
Central KYC serves as a single, standardised database containing verified KYC information for individuals and entities across India’s financial system. Operated by the Central Registry of Securitisation, Asset Reconstruction and Security Interest of India (CERSAI), the CKYC platform was designed to simplify customer onboarding, avoid repetitive KYC submissions, and improve adherence to anti-money laundering norms. According to the official CKYC FAQs, access is provided only to institutions authorised or notified under the PMLA or by financial sector regulators such as the RBI, SEBI, IRDAI, or PFRDA.
Despite being registered with FIU-IND — the body responsible for AML supervision — Virtual Asset Service Providers (VASPs) still do not have access to the CKYC database. This is puzzling, especially since CERSAI and other financial sector entities ultimately fall within the purview of the Ministry of Finance. Excluding VASPs restricts their ability to meet PMLA obligations fully and raises concerns about regulatory coherence across the financial system. Granting them CKYC access would not only make compliance smoother but would also strengthen India’s overall AML ecosystem.
The roadblock stems from the fact that CKYC access is normally reserved for entities regulated by traditional financial authorities such as the RBI or SEBI. Since VDA platforms do not fall under these supervisory frameworks, they remain outside the current eligibility criteria. However, given that they are now formally subject to AML requirements, this is ultimately a technical issue — one that policymakers can address with a clear notification or amendment.
This conversation becomes even more relevant when seen in the context of wider KYC challenges across sectors. A year ago, the Financial Stability and Development Council (FSDC) discussed the need for uniform KYC standards. A committee led by then Finance Secretary T. V. Somanathan was formed to streamline and harmonise these norms. Including the VDA sector in such committees would help ensure that no key stakeholders are left out of efforts to build a robust KYC framework.
For the VDA industry, complying with PMLA is not just about meeting regulatory expectations; it is essential for building user confidence and ensuring the credibility of the sector. Strong KYC processes and timely reporting help reduce the risk of financial crimes, protect consumers from fraud, and encourage the healthy growth of digital assets in India. Allowing VASPs to use the CKYC system would be a pragmatic step forward, enhancing both regulatory compliance and consumer protection, while reinforcing trust in India’s digital asset ecosystem.
