India's FIU-IND Issues Compliance Notices to 15 Crypto Platforms for AML Violations

Synopsis

India's Financial Intelligence Unit has issued compliance notices to fifteen virtual digital asset service providers. These platforms are accused of violating the country's anti-money laundering framework and must now be taken down. Action targets both offshore and onshore crypto entities operating without proper registration. Virtual digital asset service providers were brought under the AML framework in March 2023.

New Delhi: The Financial Intelligence Unit-India (FIU-IND) has issued compliance notices to 15 virtual digital asset service providers for allegedly violating the country's anti-money laundering framework.

It also directed action to take down the applications and URLs of the entities from public access, invoking its powers as the nodal authority under the Information Technology Act and related intermediary rules.

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The platforms named in the notices are Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, FixedFloat, WhiteBIT and Guardarian.

The action targeted both offshore and onshore crypto platforms that offer services to users in India without registering with FIU-IND as reporting entities under the Prevention of Money Laundering Act (PMLA), 2002.

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Under the PMLA framework, virtual digital asset service providers operating in India are required to register with FIU-IND. They are also required to comply with reporting, record-keeping and other anti-money laundering and counter-terrorism financing obligations.

Under the lens

These requirements apply irrespective of whether a platform has a physical presence in India.

Virtual digital assets service providers were brought into the ambit of Anti Money Laundering and Counter Financing of Terrorism framework under the provisions of the PMLA in March 2023.

The latest action underscores the government's increasing scrutiny of offshore crypto platforms serving Indian users without meeting domestic compliance requirements.

In 2025, notices were issued to 25 offshore cryptocurrency exchanges for non-compliance under the PMLA.

The exchanges, including platforms such as Huione, Paxful, Changelly and BitMex, were catering to Indian users without registering with FIU-IND.

These offshore exchanges were operating from various jurisdictions worldwide but actively solicited Indian users without ensuring compliance with Indian financial laws.