India’s financial intelligence unit flags 15 crypto platforms for AML lapses
India's Financial Intelligence Unit has issued non-compliance notices to 15 virtual digital asset service providers for failing to adhere to anti-money laundering regulations. The move follows a broader crackdown on offshore crypto platforms that operate in India without registering with local authorities.
Why it matters
This action highlights India's tightening regulatory grip on the crypto sector to prevent illicit financial flows and capital flight via stablecoins.
On Tuesday, the Financial Intelligence Unit-India (FIU-IND) issued non-compliance notices under Section 13 of the Prevention of Money Laundering Act to 15 virtual digital asset service providers, all of which are small and medium-sized operators.
The official announcement named Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, Fixedfloat, WhiteBIT, and Guardarian are violators.
India brought crypto platforms or virtual digital asset (VDA) service providers under the same anti–money laundering rules as banks in March 2023. The rule requires any crypto platform that serves Indian customers, irrespective of whether it has office in India or note, to register with the Financial Intelligence Unit–India (FIU-IND). Once registered, these platforms must maintain strict records, verify users, and report suspicious activity to the government.
The FIU also cautioned Indians about risks associated with crypto products and non-fungible tokens (NFTs).
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