The Financial Intelligence Unit – India (FIU-IND) has sent notices to 25 offshore crypto platforms for continuing to operate in India without registering under the Prevention of Money Laundering Act (PMLA), 2002, the Ministry of Finance said. The move, reported by the Press Information Bureau (PIB), is part of efforts to bring foreign platforms serving Indian users under the country’s anti-money laundering and counter-terrorist financing (AML/CFT) rules.
25 global platforms named
The 25 platforms issued notices include well-known exchanges such as Huione, Paxful, Changelly, CEX.IO, LBank, BingX, PrimeXBT, CoinEx, Poloniex, BitMex, Bitrue, HitBTC, BTCC UK, Remitano, LCX, Probit Global, BTSE, AscendEx, Phemex, ZooMex, CoinCola, CoinW, YouHodler, LocalCoinSwap, and CoinEx.
These entities reportedly continued to serve Indian users without registering with FIU-IND, keeping them outside India’s AML/CFT regulatory framework.
In addition to compliance notices under Section 13 of the PMLA, the FIU-IND has directed the takedown of websites and applications run by these platforms. The action, taken under Section 79(3)(b) of the Information Technology Act, 2000, targets services operating illegally in India without fulfilling mandatory reporting and record-keeping requirements.
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Officials said the step targets platforms operating illegally in India, without fulfilling reporting, record-keeping, and compliance obligations mandated under PMLA.
Registration and compliance obligations
All VDA SPs – whether onshore or offshore – engaged in exchange between digital assets and fiat currencies, transfer, safekeeping, or administration of virtual assets are required to register with FIU-IND as reporting entities.
These obligations are activity-based and do not depend on the entity’s physical presence in India. The FIU-IND has so far registered 50 VDA SPs, while others operating offshore remain under scrutiny.
Investor awareness and risks
The Finance Ministry highlighted that crypto products and non-fungible tokens (NFTs) remain unregulated in India and pose significant financial risks. “Investors may have no regulatory recourse for any losses arising from such transactions,” the PIB statement said.
Regulators and experts said the move is expected to push more offshore platforms to comply with registration requirements, strengthening transparency, monitoring, and investor protection in the Indian virtual asset market.
