India’s Financial Intelligence Unit has issued non-compliance notices to 15 crypto service providers and ordered action to take down their apps and URLs in India for operating without meeting the country’s anti-money laundering requirements.
Summary
- India’s FIU issued non compliance notices to 15 offshore crypto platforms, including Weex, Blofin, WOO X and WhiteBIT.
- The watchdog sought takedown action against the platforms’ apps and URLs for operating without meeting PMLA requirements.
- Crypto platforms serving Indian customers must register with FIU IND regardless of whether they have a physical presence in the country.
- The action follows earlier enforcement against major offshore exchanges, including Binance, which later registered and paid a 188.2 million rupee penalty.
The Financial Intelligence Unit-India said Tuesday that the notices were issued under Section 13 of the Prevention of Money Laundering Act, naming Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, Fixedfloat, WhiteBIT and Guardarian.
FIU targets 15 crypto platforms over PMLA compliance
Alongside the compliance notices, FIU-IND issued takedown notices covering the applications and URLs used by the 15 platforms after finding that they were operating illegally without complying with provisions of the PMLA.
The action was taken under powers linked to Section 79(3)(b) of the Information Technology Act and the Information Technology rules amended in 2025.
India brought virtual digital asset service providers under its anti-money laundering and counter-financing of terrorism framework in March 2023. The requirements apply to businesses offering crypto-to-fiat exchange, digital asset transfers, custody and other services that provide control over virtual assets.
Platforms carrying out those activities for Indian users must register with FIU-IND as reporting entities and follow requirements covering record keeping, reporting and other compliance obligations under the PMLA.
Physical presence in India does not determine whether the rules apply. An offshore company serving Indian customers can fall within the framework even if it has no office or legal entity in the country.
The latest action follows a series of measures that have expanded FIU oversight of crypto transactions. In June, the watchdog sought OTC transaction records exceeding $10,000 from at least three major exchanges, with platforms required to preserve relevant records dating back to January 2026.
The requested information included beneficial ownership details, intermediaries involved in private transactions and information about the entities behind the deals.
Earlier this year, FIU-IND tightened crypto KYC rules for service providers operating in the country. The framework included stronger identity checks, record-keeping requirements and suspicious transaction reporting obligations.
Offshore crypto activity remains under scrutiny in India
The enforcement action comes days after The Economic Times reported that some Indian crypto users were moving stablecoins such as Tether’s USDT to overseas gift card services.
According to the report, platforms based in countries including Sweden, Germany and Singapore allow users to convert cryptocurrency into gift cards that can then be spent in India on goods including groceries, fuel and gold.
Such transactions can take place without users first moving their crypto through a domestic exchange, according to the report.
Offshore trading has remained a concern for Indian authorities as they try to track crypto transactions for tax and compliance purposes. In July, crypto.news previously reported that Indian tax authorities had raised concerns over trading through offshore exchanges, private wallets and peer-to-peer transactions.
India has since expanded parts of its international tax reporting framework to cover specified crypto assets, central bank digital currencies and some digital money products. Under updated tax reporting rules, financial institutions face revised account identification and tax residency verification requirements.
The measures form part of a regulatory structure in which India taxes crypto transactions while requiring platforms serving local customers to meet financial crime and reporting rules.
Crypto gains are subject to a 30% tax, while a 1% tax deducted at source applies to qualifying virtual digital asset transactions.
India has previously blocked major offshore exchanges
FIU-IND used a similar enforcement route against larger offshore exchanges in December 2023, when it issued show-cause notices to nine platforms for failing to comply with the country’s registration requirements.
Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex were among the exchanges targeted at the time.
Authorities subsequently sought restrictions on access to their websites. By January 2024, access to several exchanges had been blocked in India, while their apps faced restrictions on major mobile app stores.
KuCoin later registered with FIU-IND and resolved its earlier non-compliance after paying a penalty. Binance followed after months of regulatory discussions.
In June 2024, FIU-IND imposed a 188.2 million rupee penalty, equivalent to roughly $2.25 million at the time, on Binance for operating in India without meeting its anti-money laundering obligations.
The exchange later completed its FIU registration in August 2024 and resumed operations in India after a seven-month restriction. Its registration made the platform subject to the reporting and compliance requirements applied to other registered crypto businesses serving the country.
Bybit later went through a similar process. The exchange paid a 92.7 million rupee penalty after authorities cited persistent non-compliance and subsequently secured FIU registration.
FIU warns users about crypto and NFT risks
The latest notice extends enforcement to a group dominated by smaller and medium-sized offshore platforms, including exchanges as well as services that facilitate swaps and other digital asset transactions.
FIU-IND did not announce financial penalties against the 15 companies in Tuesday’s release. Its action covered non-compliance notices and requests to take down public access to their applications and URLs.
The watchdog separately cautioned users about the risks associated with cryptocurrency products and non-fungible tokens, noting that such products remain unregulated in India.
“It is pertinent to mention for the safety and awareness of general public that the Crypto products and NFTs are unregulated and can be highly risky,” FIU-IND said. “There may be no regulatory recourse for any loss from such transactions.”
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