The Indian government is stepping up its crackdown on offshore crypto platforms that handle billions of dollars in digital assets. The Financial Intelligence Unit of India ( FIU-IND ) has issued notices against 25 exchanges , accusing them of not registering and not complying with the Anti -Money Laundering (AML) Act
According to the finance ministry, authorities ordered exchanges to withdraw their apps and websites from the Indian market, although at the time of the announcement several platforms remained operational.
Exchanges with billions in assets
Of the 25 exchanges under scrutiny, 14 have a combined assets under management of more than $9 billion and recorded trading volume of nearly $20 billion in just 24 hours, according to data from CoinMarketCap. The list includes names like BingX, LBank, CoinW, ProBit Global, BTCC, AscendEX, Zoomex and Poloniex.
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Despite the notifications, most of these companies have not issued an official statement or responded to requests from journalists.
Legislative framework and obligations
India does not yet have a specific regulatory framework for crypto, however, as of March 2023, the Ministry of Finance has made it clear that digital asset service providers fall under the Act Money LaunderingThis practically means that any exchange providing services to Indian citizens must:
- Register with FIU-IND.
- Comply with transparency obligations, suspicious transaction reporting and AML/KYC checks.
Failure to follow these steps can lead to fines, operating restrictions, or even exclusion from the market.
The "good students" and the previous measures
Despite the current crackdown, more than 50 exchanges have already complied and registered with the regulator. The list includes giants like Binance, Coinbase, KuCoin, and OKX, which have faced pressure from the Indian government in the past.
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OKX decided to withdraw from the market completely last year, unlike Binance and Coinbase , which registered with the FIU to restart their operations. Binance officially returned in August 2024, while Coinbase relaunched its services in early 2025, albeit with limited functionality and an “early access” program for Indian users.
Why India is a critical market for crypto
With a population of over 1.4 billion and a rapidly growing digital economy, India is considered one of the most attractive but also most challenging markets for crypto. The government is trying to find a balance between innovation and protecting the financial system.
The authorities' concern is that offshore platforms, without official registration and supervision, can serve as a channel for money laundering, tax evasion or financing of illegal activities.
The government's shift to repression
The FIU's current move is not an isolated one. It reflects a tougher strategy that India is adopting towards cryptocurrencies, at a time when the global market is oscillating between institutional adoption and ongoing regulatory pressures.
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Analysts believe that India is following the path of other economies, such as the US and the EU, where regulators are tightening requirements for security and transparency of transactions.
Impact on users
For Indian investors, this move may mean limited access to popular overseas platforms, but at the same time greater protection against suspicious or unlicensed services. The government encourages the use of FIU-registered exchanges, considering them to offer more guarantees.
However, bans or restrictions may push a portion of users to parallel solutions or unofficial transaction channels, with an increased risk of fraud.
The future of the market in India
The landscape remains uncertain. On the one hand, regulatory pressures indicate India’s intention to tightly control the space. On the other, the dynamic demand for cryptocurrencies from millions of users cannot be ignored.
