India Targets 25 Offshore Crypto Firms With AML Violations in FIU Crackdown

India is accelerating crypto sector oversight with compliance notices to 25 offshore platforms, reinforcing investor protections while expanding formal registration and anti-money laundering safeguards nationwide.

India Issues Compliance Notices to 25 Offshore Crypto Platforms

India is intensifying its oversight of the digital asset sector as the Financial Intelligence Unit India (FIU IND) clamps down on offshore platforms serving local users without registration. The latest move underscores the regulator’s push to enforce anti-money laundering compliance while signaling growing concern over investor risks from unregulated crypto activity.

The FIU IND announced on Oct. 1 that it issued non-compliance notices to 25 offshore crypto service providers, stating:

As part of recent compliance action against such entities, Financial Intelligence Unit India (FIU IND) has issued notices of non-compliance to the following 25 offshore Virtual Digital Assets Service Providers (VDA SPs) under Section 13 of the Prevention of Money Laundering (PML) Act, 2002.

The entities are Huione, BC.Game, Paxful, Changelly, CEX.IO, Lbank, Youhodler, Bingx, PrimeXBT, BTCC, Coinex, Remitano, Poloniex, Bitmex, Bitrue, LCX, Probit Global, BTSE, HitBTC, Localcoinswap, Ascendex, Phemex, Zoomex, Coincola, and Coinw.

Moreover, the FIU IND director, exercising powers under Section 79(3)(b) of the Information Technology Act, 2000, ordered the removal of certain websites and apps. Notices were issued to the entities regarding “takedown of the application/URLs for public access which have been found to be operating illegally without complying with the relevant provisions of the PML Act, 2002 in India.”

Regulators highlighted ongoing efforts to expand compliance, noting:

Till date 50 VDA SPs have registered with FIU IND.

“However, from time to time the entities which are catering to Indian users but not getting registered and thus remain outside the AML/CFT framework are identified by the FIU IND,” the announcement adds.

Officials further cautioned investors: “It must be mentioned that the crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.” While the enforcement is aimed at strengthening the financial system, critics warn that such restrictions may push users to unregulated channels. Advocates of crypto argue that a compliance-led framework, rather than strict takedowns, could better balance innovation with investor protection.