49 Crypto Exchanges Complete Registration with India’s FIU Under New AML Framework

TLDR:

• 45 domestic and 4 offshore crypto exchanges completed FIU-IND registration for 2024-25 fiscal year
• FIU-IND imposed total penalties of INR 2.8 billion on non-compliant platforms in previous year
• 25 offshore platforms including BitMEX and LBank blocked from serving Indian users in October 2025
• Binance, Coinbase, and Mudrex among five offshore exchanges maintaining market access after compliance

Crypto exchanges operating in India have reached a new compliance milestone as 49 platforms completed registration with the Financial Intelligence Unit of India for the 2024-25 fiscal year. 

The FIU-IND report, accessed on January 5, 2026, confirms that 45 domestic and four offshore platforms now operate as reporting entities under the Prevention of Money Laundering Act. 

This development marks a turning point for digital asset regulation in the country. The registration process integrates Virtual Digital Asset service providers into India’s anti-money laundering framework.

Compliance Framework and Penalty Enforcement

The FIU-IND has established strict monitoring requirements for all registered crypto exchanges under the PMLA framework. Each platform must track suspicious transaction reports and determine beneficial ownership of wallets. 

Moreover, exchanges are required to monitor transfers between hosted and un-hosted addresses. The agency appointed designated directors and principal officers at each entity to maintain direct communication with federal authorities.

The FIU imposed penalties totaling INR 2.8 billion on non-compliant platforms during the previous fiscal year. 

These fines targeted exchanges that failed to meet reporting obligations or delayed registration procedures. The enforcement action demonstrates India’s commitment to creating a transparent crypto market. 

Platforms must now conduct periodic risk assessments and sanctions screening as part of ongoing compliance measures.

The strategic analysis component of the report identifies several criminal exploitation patterns within the VDA sector. Authorities tracked the use of crypto funds for hawala transactions, illegal gambling operations, and various fraudulent schemes. 

In one case, the FIU successfully identified an illegal adult content website through VDA flow monitoring. The agency classified crypto markets as targets for serious criminal activity despite their potential for legitimate wealth creation.

Offshore Platform Restrictions and Market Access

The FIU took decisive action in October 2025 by blocking 25 offshore crypto exchanges from serving Indian users. 

These restricted platforms include BitMEX, LBank, and Phemex, which failed to complete registration requirements. 

The blocked entities cannot operate in India until they fulfill PMLA reporting obligations and appoint local representatives. This enforcement creates a clear divide between compliant and non-compliant operators in the market.

Five major offshore exchanges successfully completed the registration process and maintain market access. Binance, Coinbase, and Mudrex are among the offshore platforms that met all regulatory requirements. 

These exchanges submitted necessary documentation and established compliance frameworks acceptable to Indian authorities. 

Their successful registration provides a template for other international platforms seeking Indian market entry.

The registration requirement effectively channels Indian retail trading volume into regulated venues with government oversight. The FIU plans to tighten monitoring mechanisms as the 2026 fiscal year progresses. 

India’s regulatory approach now ranks among the strictest globally for digital asset trading. The framework balances innovation potential with risk mitigation through comprehensive transaction monitoring and reporting standards.