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CS Professional · IFSCA - Regulations, Listing and Compliances · Overview of FinTech and Service Providers in IFSC

Arjun Digital Assets wants to launch a retail crypto-currency trading app from GIFT City. Which statement is the most accurate way to advise it at this level of study?

The firm must engage with the IFSCA regulatory framework and cannot assume crypto activity is freely permitted just because it sits in GIFT IFSC. IFSC units remain subject to authorisation, permitted activities and AML or financial crime compliance. Claims of blanket exemption or foreign-only regulation are incorrect.

  1. AAny crypto activity requires prior engagement with the IFSCA framework; it cannot be assumed to be freely permitted merely because it is located in an IFSCCorrect
  2. BBeing in an IFSC exempts it from all licensing and AML requirements
  3. CCrypto trading is regulated only by the stock exchange where it lists
  4. DOnly the foreign regulator of the app's users matters

Explanation

IFSC units operate under IFSCA oversight and permitted-activity frameworks, together with AML and financial crime compliance. Location alone gives no blanket exemption, and the other options wrongly shift or remove regulatory responsibility.

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