India Cracks Down on 15 Crypto Platforms Over Anti-Money Laundering Rule Violations
India's Financial Intelligence Unit-IND (FIU-IND) has sent notices to 15 cryptocurrency platforms for alleged violations of anti-money laundering rules. The move is part of a broader effort by the Indian government to regulate the crypto sector and prevent money laundering.
The FIU-IND issued notices under Section 13 of the Prevention of Money Laundering Act, 2002, which applies to entities operating in India. The unit also sought action to restrict public access to these platforms' websites and applications under Section 79(3)(b) of the Information Technology Act, 2000.
The notices are a result of a risk-based approach to transactions involving unhosted wallets, anonymity-enhancing crypto tokens, tumblers, mixers, and other services that pose heightened money laundering risks to financial institutions. The move highlights India's expanding regulatory scrutiny of crypto platforms and VDA-related transactions.