India Cracks Down on 15 Crypto Platforms

India’s Financial Intelligence Unit (FIU-IND) has issued non-compliance notices to 15 crypto platforms, including Weex, Blofin, DigiFinex, XT.com, and WhiteBIT, ordering takedown of their apps and URLs for operating illegally in India under the Prevention of Money Laundering Act (PMLA). This marks one of the most aggressive enforcement pushes since India expanded AML rules to cover virtual digital asset providers in 2023.

In March 2023, Virtual Digital Asset Service Providers (VDA SPs) were formally brought under India’s Anti‑Money Laundering and Counter‑Terrorist Financing (AML/CFT) framework through the Prevention of Money Laundering Act, 2002 (PMLA).

All VDA SPs serving Indian users — whether based offshore or onshore — and engaged in activities such as exchanging virtual assets with fiat currencies, transferring digital assets, safekeeping or administering them, or providing instruments that enable control over such assets, must register with FIU‑IND as Reporting Entities.

Under the PMLA and its associated rules, these entities are required to comply with obligations including registration, reporting, record‑keeping, and customer due diligence. Importantly, these requirements are activity‑based and apply regardless of whether the service provider has a physical presence in India.  

Key Details of the FIU Action

• Date of action: September 9–24, 2026
• Platforms targeted: Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, FixedFloat, WhiteBIT, Guardarian
• Legal basis: Section 13 of the Prevention of Money Laundering Act (PMLA), 2002
• Enforcement mechanism: Notices issued under the IT Act, 2000 and Intermediary Guidelines (2025) to block apps/URLs
• Reason: Operating in India without registering as reporting entities with FIU-IND, failing AML/CFT obligations

Context and Background

• AML expansion (March 2023): India brought Virtual Digital Asset Service Providers (VDA SPs) under AML rules
• Past enforcement:
  - 2023: FIU-IND targeted Binance, Kraken, KuCoin; Binance later paid ₹18.82 crore penalty
  - 2025: Notices issued to 25 offshore exchanges including Paxful and BitMex
• User workarounds: Indian users increasingly use stablecoin-to-gift card platforms abroad to bypass Indian exchanges

Risks for Indian Users

• Crypto & NFTs remain unregulated in India — no investor protection or recourse for losses
• Platforms named in the FIU list may face sudden service disruptions
• Offshore exchanges may suspend services temporarily until compliance is achieved

Implications

• For investors: Expect tighter scrutiny, possible account freezes, and mandatory KYC
• For platforms: Offshore exchanges must register with FIU-IND or exit the Indian market
• For regulators: Reinforces India’s stance that crypto activity must align with AML/CFT frameworks

Next Steps You Might Explore

Topic	Description
FIU compliance rules	Understand reporting obligations for crypto in India
Crypto regulation in India	Explore evolving legal frameworks and restrictions
Risks of offshore exchanges	Learn about service disruptions and compliance issues
Stablecoin gift card workaround	See how users bypass Indian exchanges with gift cards

Financial Intelligence Unit–India and Pension Fund Regulatory and Development Authority Sign MoU to Strengthen India’s Fight Against Money Laundering

In a significant step towards bolstering India’s defences against money laundering and financial crimes, the Financial Intelligence Unit–India (FIU‑IND) and the Pension Fund Regulatory and Development Authority (PFRDA) have signed a comprehensive Memorandum of Understanding (MoU) to enhance information sharing and coordination.

The MoU was signed by Shri Amit Mohan Govil, Director, FIU‑IND, and Shri Randip Singh Jagpal, Whole Time Member, PFRDA, in the presence of Shri Sivasubramanian Ramann, Chairperson, PFRDA.

Key Objectives of the MoU

• Capacity Building: Joint outreach and training programmes for regulated/reporting entities, focusing on strengthening Anti‑Money Laundering and Combating Financing of Terrorism (AML/CFT) capabilities.
• International Alignment: Ensuring compliance with global standards and facilitating exchange of information with foreign FIUs under the Egmont Principles of Information Exchange.
• Risk Assessment: Identifying and assessing Money Laundering and Terror Financing (ML/TF) risks and vulnerabilities across financial sub‑sectors.
• Red Flag Indicators: Developing and disseminating indicators for suspicious transactions.
• Compliance Monitoring: Supervising and monitoring reporting entities’ adherence to obligations under the Prevention of Money Laundering Act (PMLA), PML Rules, and PFRDA guidelines.
• Regular Coordination: Designation of nodal officers and quarterly meetings to deliberate on issues of mutual interest.

About FIU‑IND

The Financial Intelligence Unit–India is the central national agency responsible for receiving, processing, analyzing, and disseminating information on suspect financial transactions. It plays a pivotal role in coordinating efforts against money laundering and financing of terrorism.

About PFRDA

The Pension Fund Regulatory and Development Authority, established under the PFRDA Act, 2013, regulates, develops, and supervises India’s pension sector. It oversees the National Pension System (NPS) and Atal Pension Yojana (APY), ensuring orderly growth of the pension ecosystem and safeguarding subscriber interests.