India is stepping up regulation of the crypto sector, with 49 cryptocurrency exchanges officially registered with the Financial Intelligence Unit (FIU) during the 2024–25 financial year. This move is part of the government’s effort to bring digital asset activity under stricter anti-money laundering (AML) and counter-terror financing controls, as concerns rise over crypto misuse in criminal activities.
According to the FIU report for the 2024–25 financial year, accessed by PTI, the registration follows a review of Suspicious Transaction Reports (STRs) submitted by crypto platforms. The FIU found that crypto funds were repeatedly used for high-risk activities, including scams, fraud, gambling networks, unaccounted transfers, and peer-to-peer abuse. Some cases were even linked to darknet services, terror financing, and child sexual abuse material, highlighting how crypto anonymity can be exploited if left unregulated.
Out of the 49 registered platforms, 45 are based in India, while four operate overseas. Unlike other countries where multiple agencies oversee crypto, India has appointed the FIU, under the Ministry of Finance, as the single authority monitoring exchanges.
Sumit Gupta, CEO of CoinDCX, said, “ The crypto market in India is far more competitive than most people think. IMO, Healthy competition is good for the ecosystem as it promotes innovation.”
Crypto exchanges in India are legally classified as Virtual Digital Asset (VDA) Service Providers and have been under the Prevention of Money Laundering Act (PMLA) since 2023. Exchanges must:
After registration, exchanges also need to:
All this information must be shared with the FIU.
The FIU actively enforces compliance. During FY 2024–25, crypto platforms failing to meet AML obligations were fined a total of ₹28 crore. The FIU also identified regional transaction hotspots and digital assets commonly linked to illicit activity, strengthening the government’s intelligence and monitoring framework.
India recognizes the potential of crypto to transform finance and wealth creation but remains cautious about the risks posed by fast transactions, global reach, and pseudonymous transfers. Alongside AML measures, the government has reinforced oversight through taxation rules and withholding tax provisions under the Income Tax Act.
The FIU monitors crypto exchanges, enforces AML compliance, and tracks suspicious transactions to prevent fraud, scams, and illicit activities.
Exchanges must submit suspicious activity reports, identify wallet owners, monitor transfers, conduct audits, and screen for sanctions.
India aims to curb fraud, terror financing, and scams while promoting a secure crypto ecosystem and protecting investors.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Glassnode published data revealing that 30 percent of the circulating Bitcoin supply relies on cryptography…
ZEST is trying to claw its way into the next leg higher after breaking above…
AERO is suddenly back on traders’ radar, and honestly, it’s not hard to see why.…
Crypto exchange OKX is no longer stopping at memecoins, perpetual swaps, or token hype cycles.…
After trading within a tight range, the SUI price volatility has surged as it has…
U.S. lawmakers have officially launched an investigation into prediction market platforms Polymarket and Kalshi over…
