TLDR
- India’s financial watchdog has issued notices to 25 crypto exchanges for failing to comply with anti-money laundering regulations.
- The targeted platforms include major exchanges like BingX, LBank, CoinW, and ProBit Global.
- The Indian government has ordered these exchanges to withdraw their apps and websites from public access in India.
- Fourteen of the affected exchanges together hold over $9 billion in assets and recorded $20 billion in daily trading volume.
- The Indian finance ministry has made it mandatory for virtual asset providers to register with the FIU-IND under the Prevention of Money Laundering Act.
India’s financial watchdog has targeted 25 offshore crypto exchanges for failing to comply with anti-money laundering regulations. The Financial Intelligence Unit India (FIU-IND) issued notices to platforms like BingX, LBank, CoinW, and ProBit Global. The exchanges must also withdraw their apps and websites from the Indian market.
Exchanges Fail to Register with Indian Financial Watchdog
The FIU-IND’s actions follow the failure of these exchanges to meet India’s anti-money laundering requirements. The government’s move affects exchanges holding billions in assets. The Indian finance ministry stated that these platforms did not register under the Prevention of Money Laundering Act of 2002. This regulation made it mandatory for virtual asset providers to comply with local laws and regulations.
Exchanges like BingX, LBank, and CoinW were among those targeted by the Indian government. Despite the notices, many platforms remain operational in India, as of the latest reports. The government’s move highlights its push for better regulatory oversight in the crypto sector.
Indian Government Enforces Compliance Rules
India’s finance ministry notified that virtual asset service providers must follow stricter compliance measures. This includes registering with the FIU-IND for monitoring and reporting activities. While many major exchanges, such as Binance and Coinbase, complied, several others have not.
At least 50 crypto exchanges have registered with India’s anti-money laundering watchdog so far. This includes prominent names like Binance, which resumed operations in August 2024. The ministry has already taken action against other large platforms, such as KuCoin and OKX, in the past.
India has increasingly focused on regulating the crypto sector over the past few years. While it does not yet have a dedicated crypto framework, its steps reflect growing concerns about financial crime. The latest move against these exchanges signals India’s determination to ensure compliance in the growing digital currency market.
