India‘s Financial Watchdog Cracks Down on Non-Compliant Crypto Platforms
India’s financial intelligence unit has intensified its regulatory scrutiny of offshore cryptocurrency exchanges, targeting 25 platforms for failing to register and comply with the country’s anti-money laundering regulations. The Financial Intelligence Unit India (FIU-IND) issued formal notices to these exchanges, demanding immediate compliance with local financial regulations.
Major Exchanges Under Scrutiny
The regulatory action encompasses several prominent cryptocurrency platforms including BingX, LBank, CoinW, ProBit Global, BTCC, AscendEX, Zoomex, and Poloniex. According to official statements from the Indian finance ministry, these exchanges have been operating without proper registration under India’s anti-money laundering framework.
The scale of these platforms is significant – data from CoinMarketCap reveals that 14 of the targeted exchanges collectively manage over $9 billion in assets and processed approximately $20 billion in trading volume within a 24-hour period preceding the regulatory action.
Immediate Regulatory Measures
FIU-IND has mandated that the non-compliant exchanges remove their applications and websites from public access in India. However, initial observations indicate that most platforms remained accessible immediately following the announcement, suggesting potential implementation challenges.
The affected cryptocurrency exchanges, including BingX, LBank, CoinW, and ProBit Global, have maintained silence regarding the regulatory notices, with none providing official comments or responses to media inquiries.
India’s Evolving Crypto Regulatory Landscape
While India continues to develop a comprehensive regulatory framework specifically for cryptocurrencies, the finance ministry established in March 2023 that virtual asset service providers must operate under the Prevention of Money Laundering Act of 2002. This classification makes registration with FIU-IND mandatory for all cryptocurrency platforms serving Indian users, requiring strict adherence to reporting and compliance protocols.
For comprehensive coverage of regulatory developments affecting financial markets, industry observers frequently turn to specialized financial monitoring services that provide detailed analysis of such enforcement actions.
Compliance Progress Among Major Players
The current regulatory push follows previous actions against several major cryptocurrency exchanges. Platforms including Binance, Coinbase, KuCoin and OKX have faced similar compliance requirements in the past year.
- OKX exited the Indian market entirely in response to regulatory pressures
- Binance resumed Indian operations in August 2024 after completing registration
- Coinbase re-entered the Indian market earlier this year
- KuCoin registered with FIU-IND in recent months to continue operations
Currently, at least 50 cryptocurrency exchanges have successfully registered with India’s anti-money laundering watchdog. Coinbase has initiated an early-access program for pre-registered Indian users, though full operational capabilities remain pending.
This regulatory enforcement underscores India’s commitment to establishing clear compliance standards for cryptocurrency operations within its jurisdiction, balancing innovation with financial security concerns.
