India is increasing its oversight of the cryptocurrency sector by requesting information on OTC crypto transactions over $10,000. The Financial Intelligence Unit (FIU-IND) has reportedly asked three major exchanges to provide details of large OTC trades and keep related records.
This step shows a stronger regulatory focus on off-exchange crypto deals, especially those involving private companies and entities where it is hard to identify the true owner of the funds. Authorities worry these transactions could be used for money laundering, tax evasion, or moving money across borders with little oversight.
Reports say the request came after a meeting in late May and focuses on large OTC deals involving closely held corporations, private firms, trusts, and other structures where it is not always easy to know who really owns the assets. Unlike regular exchange trading, OTC transactions are negotiated directly between a platform and a client.
These deals usually happen away from public order books and are often chosen by institutional investors, wealthy individuals, and corporate clients who want to make large purchases without moving market prices.
The FIU-IND, part of India’s Ministry of Finance, monitors suspicious financial transactions and helps fight money laundering. Crypto exchanges registered in India already have to report suspicious activities. But this new directive shows that regulators want more insight into large private crypto transactions that might otherwise go unnoticed.
OTC trading has drawn regulatory attention because these deals are less transparent. In a typical OTC transaction, a platform might use its own inventory or funds to fill a client’s order before finding a matching counterparty. This setup lets buyers and sellers negotiate prices directly and avoid sudden price changes that could happen if large orders were placed on public exchanges.
People in the industry say many OTC clients like these deals because they can move large amounts of money quickly and quietly. But regulators see extra risks. Once crypto assets leave an exchange and go into private wallets, it becomes harder to track where they go next. These assets can be moved across borders or between wallets without the same oversight found in traditional banking.
Another main concern is figuring out who really owns the assets. Individual retail investors are usually identified through standard Know Your Customer (KYC) checks, but it is much harder to verify the true owners of private companies, trusts, or middleman entities. Experts say finding out who controls the funds behind a transaction often takes a lot of investigation, especially when several corporate structures are involved.
Reports say exchanges have also been told to keep OTC transaction records until January 2026. The FIU may ask for more information if suspicious transaction reports are incomplete or if investigators need more details during an inquiry.
India’s latest action is part of a wider global trend. Regulators worldwide are paying more attention to large crypto transactions, ownership disclosure, transaction reporting, and stricter due diligence. As digital asset markets grow, authorities are watching both public exchanges and private channels where many big transactions happen.
For crypto exchanges and OTC desks in India, the message is clear: large off-exchange crypto transactions are now under close regulatory watch, and compliance rules are likely to get stricter soon.
Crypto news roundup: June 18, 2026
🇮🇳 India’s FIU has asked major crypto exchanges to report OTC transactions above $10,000, focusing on beneficial ownership and large private-party deals. The move aims to improve transparency, strengthen AML compliance, and bring off-exchange…
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