India’s government is cracking down on offshore crypto platforms holding billions in assets. The Financial Intelligence Unit India (FIU-IND) has issued notices to 25 crypto exchanges for failing to register and comply with the country’s anti-money laundering (AML) requirements, the finance ministry said on Wednesday.
The regulator also directed these platforms to withdraw their apps and websites from public access in India, though many remained accessible as of press time.
Among the targeted exchanges are BingX, LBank, CoinW, ProBit Global, BTCC, AscendEX, Zoomex, CEX.IO, and Poloniex. Together, 14 of the exchanges hold more than $9 billion in assets and processed about $20 billion in trading volume in the past 24 hours, according to CoinMarketCap data.
CEX.IO responded to the notice, saying it is exploring compliance pathways.
“We are in the research process and will definitely ask and explain our position to the regulator regarding this notice,” said Mark Taylor, head of financial crime at CEX.IO.
Taylor added that no immediate changes have been implemented for Indian users but advised customers to stay alert for updates regarding potential restrictions. Other exchanges, including BingX and LBank, did not respond to requests for comment.
India does not yet have a dedicated crypto law. However, in March 2023, the finance ministry placed virtual asset service providers under the Prevention of Money Laundering Act (PMLA) 2002, making FIU-IND registration mandatory.
So far, around 50 crypto exchanges have registered with the FIU, including Binance, Coinbase, and KuCoin, after facing previous enforcement actions. OKX, by contrast, exited India last year.
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Binance resumed operations in August 2024, while Coinbase re-entered India earlier this year and recently rolled out an early-access program for Indian users.
India’s latest crackdown underscores its effort to tighten control over the fast-growing crypto market, particularly unregulated offshore platforms handling large sums of money.
