FIU-IND Cracks Down on Offshore Crypto Exchanges Serving India

Financial Intelligence Unit-India (FIU-IND) has issued non-compliance notices to 15 offshore cryptocurrency exchanges that operate in India. These exchanges are required to comply with Indian regulations, but since they are based overseas, they have not been registered.

The FIU rules apply to any virtual digital asset service provider that conducts activity in India, regardless of their physical presence. The authorities are moving from requesting registration to taking action against the channels through which these exchanges are accessed by Indian traders.

As part of this effort, the FIU-IND has issued notices to 15 Virtual Digital Assets Service providers (VDA SPs) under Section 13 of the Prevention of Money Laundering Act. The exact identity of the affected exchanges is not publicly disclosed in the notice.