India’s FIU Issues Notices to 25 Offshore Crypto Exchanges Over AML Non-Compliance

Report by:  Syed Taskin Ahmed 

New Delhi, October 2, 2025 — India’s Financial Intelligence Unit (FIU-IND) has issued show-cause notices to 25 offshore cryptocurrency exchanges for failing to comply with the country’s anti–money laundering regulations under the Prevention of Money Laundering Act (PMLA), 2002.

According to officials, these exchanges have been offering services to Indian users without registering with the FIU and without adhering to Know Your Customer (KYC), transaction monitoring, and record-keeping norms mandated since March 2023.

Major Platforms Under Scrutiny

Among those flagged are some well-known global platforms including BingX, LBank, CEX.IO, CoinEx, Paxful, and BitMex.

If they fail to comply, authorities may block their websites and mobile apps in India, effectively cutting off access for Indian traders.

Regulatory Push

India extended PMLA provisions to cover Virtual Digital Asset Service Providers (VDA SPs) in March 2023, making it mandatory for crypto exchanges to follow anti–money laundering obligations similar to banks and financial institutions.

The FIU’s move is being seen as part of the government’s broader push to bring greater transparency and security to the rapidly growing digital assets sector.

What It Means for Investors

Indian crypto users may soon face restrictions in accessing non-compliant offshore platforms. Experts suggest shifting to registered and FIU-compliant exchanges operating within India to avoid disruptions in trading and withdrawals.