India’s Financial Intelligence Unit targets 15 offshore crypto exchanges for operating without registration and compliance, intensifying efforts to regulate digital assets and curb illicit activities.
India’s Financial Intelligence Unit has stepped up pressure on offshore crypto exchanges, accusing 15 platforms of failing to meet anti-money-laundering rules that apply to digital-asset businesses serving Indian customers. The action, announced on Tuesday, centres on companies that regulators say have been operating without the required registration and compliance controls, even as Indian authorities try to bring the sector under tighter supervision.
According to the agency, the notices were issued under Section 13 of the Prevention of Money Laundering Act. The platforms named include Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNOW, SimpleSwap, Fixedfloat, WhiteBIT and Guardarian. Reuters has previously reported that India brought virtual digital asset service providers into its anti-money-laundering framework in March 2023, requiring any platform serving Indian users to register with FIU-IND, keep records, verify customers and report suspicious activity.
The Block reported that FIU-IND has also sought the takedown of the platforms’ apps and web addresses from public access, underscoring the regulator’s view that they are operating illegally in the country without meeting the relevant obligations. Moneycontrol said the finance ministry separately warned that crypto products and non-fungible tokens remain unregulated in India and can pose significant risks to investors.
The latest move highlights the growing gap between the country’s regulatory expectations and the practices of some overseas exchanges that continue to target Indian traders. For regulators, the issue is not only whether platforms have a local office, but whether they comply with Indian rules once they seek business from users in the market. For investors, the warning is a reminder that access to a platform does not amount to regulatory approval.
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