India Targets 15 Crypto Platforms in Latest FIU Compliance Push
India has issued PMLA non-compliance notices to 15 crypto platforms, highlighting the AML obligations facing offshore exchanges serving Indian users.
India's Financial Intelligence Unit (FIU) has issued non-compliance notices to 15 cryptocurrency platforms, effectively barring them from public access due to non-adherence to the Prevention of Money Laundering Act. The listed platforms include Weex, Blofin, Bitunix, DigiFinex, Toobit, Rezorex, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, FixedFloat, WhiteBIT, and Guardarian.
The FIU's action is based on the legal premise that these platforms were operating illegally in India without proper compliance with the Act. This move follows India's expansion of its anti-money laundering and counter-financing of terrorism framework in March 2023, which brought virtual digital asset service providers under the Prevention of Money Laundering Act's purview, irrespective of their physical presence in the country.
The registration requirement under this Act is crucial, allowing the FIU to reach offshore platforms with no local office or incorporation. Offshore exchanges like Bybit, Coinbase, and Binance have previously navigated this requirement through registration or penalties. The FIU also highlighted that crypto products and NFTs remain unregulated in India, and transactions involving them may lack regulatory recourse for users if losses occur.
For the 15 targeted platforms, the next step could involve registering with the FIU or negotiating a penalty, signaling that such registration is non-negotiable for any exchange with Indian users, irrespective of their incorporation location.
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