India Cracks Down on Offshore Crypto Exchanges Over PMLA Non-Compliance

The Financial Intelligence Unit-India (FIU-IND) has issued compliance notices to 15 offshore cryptocurrency exchanges over their failure to comply with the Prevention of Money Laundering Act (PMLA). The affected platforms include Weex, Blofin, Bitunix, Pionex, WhiteBIT, and DigiFinex, among others. FIU-IND also sought takedowns of these exchanges' apps and websites accessible in India.

The move marks a new phase in the oversight of offshore cryptocurrency exchanges serving Indian users. The notices follow a 2023 precedent where FIU-IND issued similar notices to Binance and KuCoin. FIU-IND operates under India's Ministry of Finance and analyzes intelligence tied to suspicious financial transactions.

Crypto commentator Crypto Patel noted on social media that the move marks a new phase in offshore exchange risk for Indian traders. He emphasized that the notice is over PMLA and AML requirements, with app and website takedowns sought.