India tightens AML controls: 25 foreign crypto exchanges banned

Illegal platforms have been restricted for Indian users

India blocks 25 offshore crypto exchanges for violating AML requirements

03.10.2025 - 10:30

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2 min

Key points:

India’s FIU has sent notices to 25 offshore crypto exchanges for non-compliance with AML requirements and lack of registration in accordance with the PMLA.
The authorities have ordered internet service providers and app stores to block access to the websites and apps of these platforms.
The measures underscore India’s policy of tightening control over the crypto market.

India’s Financial Intelligence Unit (FIU) has issued notices to 25 offshore crypto exchanges for violating AML rules. These platforms are not registered under the Prevention of Money Laundering Act (PMLA) of 2002, which regulates the activities of virtual digital asset (VDA) service providers from March 2023.

According to officials, the exchanges served Indian users without a license, creating risks of money laundering and illegal transactions. The FIU has ordered Indian internet service providers and app stores to block access to the websites and mobile apps of non-compliant platforms.

The FIU noted that it had sent non-compliance notices to 25 offshore crypto service providers, including 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.

Strengthening control

From March 2023, all VDA service providers operating in India are required to implement strict Know Your Customer (KYC) procedures, maintain detailed transaction records, and report suspicious activity to the FIU.

In 2024, the FIU has already fined major international exchanges, including Binance, for operating without proper registration. Officials argue that unregistered offshore exchanges undermine the work of compliant domestic platforms and increase the risks of illicit financial flows.

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