India FIU Sends Money Laundering Report to 15 Foreign Crypto Platforms

Regulatory Expansion In March 2023, India extended anti‑money laundering rules to cover cryptocurrency platforms and virtual digital asset service providers, bringing them under the same regulatory framework that applies to banks.
Under this framework, foreign platforms that serve Indian customers are also subject to oversight.
FIU-IND’s Notification The Financial Intelligence Unit (FIU-IND) has issued a non‑compliance notice to 15 overseas cryptocurrency platforms under Section 13, stating that they do not meet the requirements of the anti‑money laundering law.
The notice covers platforms that provide services to Indian customers but are not registered with FIU-IND, even if they lack a physical office in India.
Risk Warnings FIU-IND highlighted risks associated with crypto products and NFTs, particularly the conversion of crypto assets into gift cards used for purchasing goods, fuel, and gold, which can keep money outside the purview of Indian exchanges and evade regulation.
Example Case: Binance In December 2023, a compliance notice was sent to nine major foreign exchanges, including Binance, Kraken, and KuCoin.
Following the notice, Binance registered with FIU-IND and paid a record fine of 18.82 crore rupees.
Conclusion FIU-IND’s action aims to enhance transparency and regulatory standards in India’s crypto market.
Platforms and users must take the necessary steps to comply with the new regulations and consider the associated risks.