India’s financial watchdog has brought 49 cryptocurrency exchanges under its anti-money laundering rules in a major step to tighten oversight of the digital asset space.
Key Takeaways
- 49 crypto exchanges, including 45 domestic and 4 offshore platforms, are now registered with India’s Financial Intelligence Unit (FIU).
- The move follows the 2023 classification of Virtual Digital Asset (VDA) service providers under the Prevention of Money Laundering Act (PMLA).
- The FIU blocked 25 non-compliant offshore exchanges and issued penalties totaling ₹28 crore (around $3.1 million).
- Major global platforms like Binance, Coinbase, and Bybit are now registered and allowed to operate legally in India.
What Happened?
India’s Financial Intelligence Unit (FIU) confirmed in its 2024–2025 annual report that it had officially registered 49 cryptocurrency exchanges under the country’s anti-money laundering (AML) framework. This follows the 2023 government decision to classify Virtual Digital Asset (VDA) service providers under the PMLA. The move now requires crypto platforms to follow the same compliance rules as traditional financial institutions.
Out of the 49 registered exchanges, 45 are based in India while 4 are offshore platforms that have voluntarily complied. Platforms that refused to meet these obligations have been blocked from accessing the Indian market.
49 crypto exchanges are already FIU registered, and 100s more that are not.
— Sumit Gupta (CoinDCX) (@smtgpt) January 6, 2026
The crypto market in India is far more competitive than most people think.
IMO, Healthy competition is good for the ecosystem as it promotes innovation💪 https://t.co/5BAS86eBEh
India’s Crypto Crackdown in Action
The FIU’s annual report shows India is no longer treating crypto as an unregulated space. Instead, the government is enforcing strict rules to prevent illegal activity, fraud, and money laundering.
Key regulatory changes and enforcement actions include:
- Mandatory FIU registration for all crypto exchanges operating in or serving Indian users.
- Platforms must now conduct customer identity verification, identify beneficial wallet owners, track transfers between hosted and unhosted wallets, and report suspicious transactions.
- Suspicious Transaction Reports (STRs) submitted by registered exchanges have enabled the FIU to trace illegal activities, such as:
- Online gambling operations
- Cross-border fraud
- Unregulated remittance networks like hawala
- Unlawful adult content platforms
- In one case, investigators traced crypto payments through multiple wallets to an illegal website, showcasing how AML tools can work when platforms cooperate.
Offshore Exchanges Blocked
The FIU has taken tough action against foreign platforms that refused to comply with AML rules. In October, the regulator blocked 25 offshore exchanges, including:
- BitMEX
- LBank
- Phemex
- BingX
- CoinW
- CEX.IO
- Poloniex
These platforms are now inaccessible to Indian users unless they register with the FIU and meet reporting obligations.
Meanwhile, major players like Binance, Coinbase, Mudrex, and Bybit have completed registration. Bybit resumed operations in India after paying a $1 million penalty and fulfilling compliance requirements.
Registered exchanges must also appoint a local director and a designated principal officer responsible for communication with Indian authorities.
Financial Penalties for Non-Compliance
The FIU revealed that in the 2024–25 fiscal year, it imposed penalties totaling ₹28 crore on crypto platforms that failed to meet compliance standards. These fines demonstrate India’s intent to build a secure and transparent ecosystem while punishing non-cooperation.
Government Message: Regulate, Not Eliminate
Despite the stricter rules, Indian authorities clarified that the goal is not to ban cryptocurrencies, but to ensure they operate within a legal and supervised system.
As the FIU stated in its report:
Crypto exchanges that follow the law can continue to serve Indian users. Those that do not face being shut out entirely.
CoinLaw’s Takeaway
In my experience, this is the strongest move yet by the Indian government to take control of crypto regulation. I found it especially telling that they aren’t trying to eliminate crypto, but rather making sure it doesn’t become a haven for illegal activity. This shift shows maturity in policy: letting innovation thrive but under tight supervision. If you’re using or investing in crypto in India, make sure your platform is registered and compliant. Otherwise, you’re not just taking financial risks, but also legal ones.
