Close Menu
    X (Twitter)
    Blockchain Journal
    • News
      • Blockchain News
      • Bitcoin News
      • Ethereum News
      • NFT
      • DeFi News
      • Polkadot News
      • Chainlink News
      • Ripple News
      • Cardano News
      • EOS News
      • Litecoin News
      • Monero News
      • Stellar News
      • Tron News
      • Press Releases
      • Opinion
      • Sponsored
    • Price Analisys
    • Learn Crypto
    • Contact
    • bandera
    Facebook X (Twitter) Instagram
    Blockchain Journal
    Home » India warns 25 offshore crypto exchanges for AML non-compliance and moves to block access

    India warns 25 offshore crypto exchanges for AML non-compliance and moves to block access

    0
    By ethan on October 2, 2025 Market
    Regulator imprints a digital globe with crypto logos, background in tones of the Indian flag, indicating AML control.
    Share
    Facebook Twitter LinkedIn Pinterest Email

    India has issued formal warnings to 25 offshore cryptocurrency exchanges for ignoring anti-money-laundering rules, with authorities planning to cut off their access to Indian users. FIU-IND says the action tightens oversight of digital transfers and limits financial crime, narrowing trading choices for millions of investors while pushing foreign platforms to register under local law.

    Since March 2023, every virtual asset service provider serving Indians must register as a reporting entity and comply with the Prevention of Money Laundering Act (PMLA) and full KYC checks. Data cited by FinLaw or Cryptonews indicate that the latest batch of notices turns the rule into practice, as FIU-IND has asked for domain blocks and warned of penalties for unregistered operation.

    Regulatory action and compliance framework

    The list of warned platforms includes Huione, Paxful, CEX.IO, and LBank alongside BingX, and authorities have indicated they plan to cut off their access to Indian users. Bybit and some other platforms have registered, while the rest risk blocking or fines.

    PMLA (the Prevention of Money Laundering Act, 2002) sets out duties to detect and report suspicious transactions, forming the backbone of FIU-IND’s compliance expectations. Cryptocurrencies remain outside legal tender status, but the Government maintains a cautious line between adoption and control as registration requirements are enforced.

    The enforcement drive narrows investor options but channels activity toward registered venues, with FinLaw-cited analyses noting a shift in trading volume that may speed market consolidation and lift operational standards for any exchange seeking to stay in India. Domestic exchanges could see increased volume and sharper competition, pushing upgrades in infrastructure and compliance.

    Practical results of the FIU-IND drive include changes in adoption, liquidity, risk, and institutional interest. Users losing access to blocked offshore sites may open accounts on registered platforms, moving liquidity to regulated order books. Domestic exchanges receive extra volume and face heightened rivalry, which pressures them to improve systems and compliance.

    Tighter rules reduce the chance of money laundering but raise operating costs for providers and customers. FinLaw reports that clearer rules could draw custody services or blockchain development projects.

    The Government may release a policy paper outlining a long-term stance on digital assets. Until then, FIU-IND registration will determine which exchanges can continue serving India, according to the cited reports.

    In practical terms, the crackdown aims to curb financial crime while steering crypto activity into regulated channels, signaling that continued market access will depend on strict adherence to FIU-IND registration, PMLA obligations, and full KYC compliance.

    AML AMLO Featured india Prevention of Money Laundering Act
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    ethan

    Related Posts

    New York bill freezes fossil-fueled Bitcoin mining permits, orders environmental review

    October 2, 20253 Mins Read

    Altcoin gains stay narrow as DeXe, Ether.fi and Aptos rally on fresh triggers

    October 2, 20252 Mins Read

    Citi forecasts Bitcoin at $181,000 by end of 2026 driven by ETF flows

    October 2, 20252 Mins Read

    Solana: why the latest rally could be a bull trap

    October 2, 20253 Mins Read

    Telegram Wallet Now Allows Buying Tokenized Stocks on Telegram Following Its New Alliance with Kraken

    October 2, 20252 Mins Read

    Polymarket Prepares for Its Imminent U.S. Launch After Getting the Green Light from the CFTC

    October 2, 20252 Mins Read

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    © 2025 Blockchain Journal

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.