India’s Monetary Intelligence Unit (FIU) has revealed that 49 cryptocurrency exchanges accomplished registration underneath the nation’s anti-money laundering framework for the fiscal 12 months 2024-25.
This growth represents a major step in strengthening regulatory oversight of the nation’s increasing digital asset sector.
India’s FIU Says 49 Crypto Corporations Now Meet AML Requirements for FY24–25
In line with the FIU’s newest annual report, many of the registered platforms are home, with 45 exchanges working inside India. The remaining 4 are offshore platforms registered with the FIU as reporting entities. This permits them to proceed serving Indian customers underneath the nation’s compliance framework.
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In India, cryptocurrencies are legally labeled as Digital Digital Property (VDAs). Moreover, the framework designates platforms facilitating their buying and selling as VDA Service Suppliers (VDA SPs).
In 2023, the regulators formally introduced these entities underneath the Prevention of Cash Laundering Act (PMLA). As reporting entities, the FIU requires VDA SPs to submit Suspicious Transaction Reviews (STRs).
Their obligations additionally embrace figuring out and reporting useful possession of wallets, monitoring fundraising actions comparable to preliminary coin choices or token choices, and monitoring transfers between hosted and unhosted wallets.
Within the report, the FIU said that its strategic evaluation of STRs highlighted persistent dangers throughout the cryptocurrency ecosystem. Whereas acknowledging the sector’s potential for monetary innovation and wealth creation, the company warned that digital property have been exploited for critical legal exercise. Recognized crimson flags included the usage of crypto for hawala operations, unlawful playing, and complicated fraud schemes.
“Nonetheless, VDAs, VDA SPs have sure potential cash laundering and terror financing dangers, owing to their world attain, capability for speedy settlement, capability to allow peer-to-peer transactions, and potential for elevated anonymity and obfuscation of transaction flows and counterparties,” the report learn.
The report additionally revealed that the FIU imposed complete penalties of ₹28 crore (roughly $3.1 million) through the 2024–25 fiscal 12 months on crypto exchanges discovered to be non-compliant. In October, the regulator additionally despatched notices to 25 crypto exchanges, together with BingX, LBank, CoinW, CEX.IO, and Poloniex, for failing to adjust to the nation’s anti-money laundering guidelines.
Whereas the crackdown continues, a number of main world exchanges have resumed operations within the Indian market. Bybit returned to the nation after finishing native registration necessities and paying a $1 million penalty.
Binance additionally made its manner again into India in 2024 following the cost of a $2.2 million high quality. In December, Coinbase resumed person onboarding with plans to introduce a fiat on-ramp in 2026.
Parallel to change oversight, authorities have intensified efforts towards crypto-related fraud. Current enforcement actions have dismantled a number of scams, together with a decade-long operation that defrauded traders by way of Ponzi schemes promising excessive returns.