Michaela
India’s Financial Intelligence Unit (FIU IND) has issued compliance notices to 25 crypto exchanges, citing violations of the Prevention of Money Laundering Act (PML).
Key point:
- India’s FIU issued compliance notices to 25 crypto exchanges, including Huione, BitMex, and BingX, for violating anti-money laundering rules under the PML Act.
- The targeted exchanges have been ordered to remove their apps and websites from public access, highlighting ongoing scrutiny of unregistered platforms serving Indian users.
- All Virtual Digital Asset Service Providers, whether domestic or offshore, must register with the FIU and comply with record-keeping, reporting, and AML/CFT obligations under Indian law.
India’s Ministry of Finance confirmed in an official statement that the FIU issued notices to 25 offshore Virtual Digital Asset Service Providers (VDA SPs), including Huione, BitMex, and BingX, for failing to comply with Section 13 of the PML Act.
The FIU director has also ordered the targeted crypto exchanges to remove their apps and websites from public access in India. While 50 VDA SPs are currently registered with the FIU, authorities noted that unregistered platforms serving Indian users continue to be identified, leaving them outside the country’s anti-money laundering and counter-terrorist financing framework.
Under Indian law, all VDA SPs, whether based domestically or offshore, must register with the FIU as Reporting Entities if they engage in activities such as crypto-to-fiat exchanges, transfers, custody, or services enabling control over digital assets. These requirements fall under the PML Act 2002 and apply regardless of an entity’s physical presence in India.
Registered providers are obligated to maintain records, report transactions, and comply with other anti-money laundering and counter-terrorist financing measures outlined by the FIU.
The development comes on the heels of new directives from the Reserve Bank of India (RBI), which last week unveiled regulations to enhance authentication standards for digital payments. The framework introduces dynamic verification requirements and places increased accountability on issuers, forming part of the RBI’s 2026 roadmap to address the growing threat of payment fraud.
The framework is designed to bolster consumer protection and safeguard market integrity, while ensuring the payments ecosystem can adapt to evolving technologies. It further extends enhanced security measures to cover cross-border transactions conducted with cards issued in India.
India’s newest moves mark a decisive push to bring both emerging sectors under closer scrutiny. By targeting non-compliant platforms and raising security standards, regulators are signaling that innovation must move in lockstep with accountability, setting the stage for a more transparent and resilient financial ecosystem.
Follow on X
Follow on Instagram
Read More
- Crypto Kidnapping: India Jails 14, Including Cops & Ex-MLA
- Coinbase and Indian Minister Explore Blockchain Push — What It Means for SHIB
- $44M Hack Hits Indian CoinDCX — What It Means for Shibarium Security
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
