India’s Financial Intelligence Unit (FIU-IND) has issued notices to 25 offshore crypto exchanges for violating the Prevention of Money Laundering Act (PMLA). The move reinforces the country’s strict regulatory stance and could reshape the crypto landscape both locally and globally.
In a new display of its hardline stance toward unregulated cryptocurrencies, India’s Financial Intelligence Unit (FIU-IND) has formally issued notices to 25 offshore cryptocurrency exchanges, accusing them of failing to comply with the provisions of the Prevention of Money Laundering Act (PMLA, 2002). Among the platforms named are Huione, CEX.IO, and BingX, all of which must now respond to Indian authorities and demonstrate their commitment to transparency and financial compliance.
This action adds to a series of measures adopted by the Indian government in recent months aimed at tightening oversight of the digital asset ecosystem. In December 2023, the FIU had already issued show-cause notices to nine offshore exchanges, including Binance, KuCoin, and Kraken, for operating without registration or local supervision. Subsequently, the government blocked access to their apps and websites within Indian territory, prompting several of these platforms to begin regularization procedures. As a result, Binance and KuCoin obtained registration in 2024, after paying multimillion-dollar fines and adopting stricter compliance policies.
Thus, India is moving toward a model in which every platform offering digital asset services to Indian users must adhere to the same regulatory standards as local financial institutions. This initiative not only aims to combat money laundering and illicit financing but also to strengthen tax collection and promote the growth of domestic exchanges already operating under a strict legal framework, such as WazirX and CoinDCX. Moreover, with this policy, the country seeks to align itself with international standards like the Crypto-Asset Reporting Framework (CARF) promoted by the OECD, which facilitates cross-border tax information sharing.
The impact of this crackdown could be both broad and significant. On one hand, many users relying on international exchanges may face account restrictions or access blocks, prompting a mass migration toward locally regulated platforms. On the other hand, global exchanges will be forced to strengthen compliance mechanisms or, in the worst case, withdraw from the Indian market, one of the world’s largest and fastest-growing crypto ecosystems. Additionally, this decision sends a strong signal to other governments in the region, which may follow India’s example by adopting stricter cryptocurrency regulations.
Ultimately, the FIU-IND’s latest action confirms that India is determined to lead the path toward a more transparent and regulated crypto environment. This measure not only strengthens market oversight but also redefines the rules of engagement for global players. In a context where crypto adoption continues to accelerate, the country seeks to strike a balance between innovation and control, positioning itself as a benchmark for financial digital governance.
