“Trade with trust, not crime , FIU tightens India’s crypto line.”
Is India’s crypto free ride over? India has made an important step towards increasing oversight of the cryptocurrency sector, with 49 cryptocurrency exchanges registering with the Financial Intelligence Unit (FIU) for the fiscal year 2024-25.
This action is a component of the government’s larger initiative to stop the financing of terrorism, money laundering, and other illicit acts connected to digital assets.
The majority of the registered exchanges are based in India, however, some are located outside, according to a FIU report that PTI was able to see. These platforms are now regulated by the Prevention of Money Laundering Act (PMLA) and are legally categorised as Virtual Digital Asset (VDA) Service Providers.
Crypto exchanges are required to file Suspicious Transaction Reports (STRs) to the FIU as reporting companies. Cases of cryptocurrency misuse for fraud, gambling, hawala transactions, scams, and peer-to-peer crimes were found through a strategic review of these complaints.
The main concerns within the cryptocurrency ecosystem were also highlighted by several publications that pointed to connections to child sexual abuse content, dark web services, and terror financing.
The FIU pointed out that although cryptocurrencies have financial and innovative benefits, their worldwide reach, quick settlement times, direct payments, and partial anonymity also pose hazards.
India has designated the FIU as the sole body responsible for registering and keeping an eye on cryptocurrency exchanges for threats of AML and terrorist financing in order to solve this.
The FIU fined non-compliant cryptocurrency platforms ₹28 crore during FY 2024–2025. Strict regulations, including customer due diligence, wallet ownership verification, sanctions screening, internal audits, and frequent risk assessments, must now be adhered to by registered exchanges.
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