FIU Issues Notices to 25 Offshore Crypto Exchanges Over AML Non-Compliance
India’s Financial Intelligence Unit (FIU-IND) has taken decisive action against 25 offshore cryptocurrency platforms, issuing compliance notices for failing to meet India’s anti-money laundering (AML) requirements. The FIU confirmed that these platforms have not registered under the Prevention of Money Laundering Act (PMLA), 2002, a regulatory framework extended to Virtual Digital Asset (VDA) service providers since March 2023.
According to officials, the platforms were actively servicing Indian users without authorization, raising concerns over the potential misuse of digital assets for money laundering and illicit transactions. The FIU has also directed Indian internet service providers and app stores to block access to the websites and mobile applications of the non-compliant platforms.
Well-known names identified in reports include Huione, CEX.IO, BingX, Paxful, LBank, CoinEx, and AscendEx. While the complete list of all 25 platforms has not been consolidated in one release, multiple business and technology outlets have highlighted these platforms as part of the enforcement action. The notices signal a strong message to other offshore entities catering to Indian customers without proper registration.
Strengthening India’s crypto compliance framework
This latest crackdown underscores the Indian government’s effort to bring the cryptocurrency ecosystem in line with global AML and counter-terrorist financing standards. Since March 2023, all VDA service providers operating in India have been obligated to implement robust Know Your Customer (KYC) processes, maintain detailed transaction records, and report suspicious activity to the FIU.
Authorities have consistently reinforced that compliance is not optional. In 2024, the FIU imposed financial penalties and issued show-cause notices to high-profile global platforms, including Binance, for operating without proper registration. Officials argue that unregistered offshore platforms undermine compliant domestic platforms and heighten risks of illegal financial flows.
Impact on Indian crypto traders and industry
For Indian cryptocurrency users, the notices could disrupt access to certain offshore platforms that offered higher liquidity, a wider variety of trading pairs, and sometimes lower transaction fees. Analysts suggest that the enforcement drive may push more traders toward India-based registered platforms, potentially boosting domestic trading volumes. However, challenges remain, as determined users may still resort to using VPNs or decentralized networks to bypass restrictions.
Industry experts note that the FIU’s move may also push global platforms to reevaluate their operations in India. Those aiming to tap into one of the world’s quickest-growing digital asset markets may find it essential to comply with local laws and register under the PMLA framework.
The Indian government has repeatedly emphasized the importance of regulating digital assets in line with Financial Action Task Force (FATF) recommendations. While India has yet to finalize a comprehensive cryptocurrency law, the current enforcement actions make it clear that authorities will not tolerate regulatory evasion.
By targeting 25 offshore platforms in one of the largest actions of its kind, the FIU is setting a precedent for stricter oversight of the crypto industry. Regulators argue that such measures are necessary to protect investors, prevent misuse of digital currencies, and ensure the sector grows responsibly.
With India emerging as a significant crypto market globally, the FIU’s crackdown highlights the country’s determination to enforce financial integrity and strengthen trust in its digital asset ecosystem.
