The Indian government has stepped up its crackdown on offshore crypto platforms, sending notices to 25 virtual digital asset (VDA) service providers for not following anti-money laundering rules.
The action, announced by the Union Finance Ministry, targets major global exchanges including Singapore-based CoinW, UK’s BTCC, Hong Kong’s Changelly, and U.S.-based Paxful under the Prevention of Money Laundering Act (PMLA), 2002.
Offshore Crypto Firms Under Fire
The Financial Intelligence Unit-India (FIU-IND), which operates under the finance ministry, confirmed issuing the notices under Section 13 of the PMLA.
The regulator has also directed these entities to take down their websites and applications from public access in India, stating that they were operating illegally without complying with the country’s anti-money laundering and counter-financing of terrorism (AML-CFT) framework.
Prominent names on the list include Huione (formerly Huione Guarantee) of Cambodia, CEX.IO of the U.S. and UK, LBank (LBK Blockchain Co. Ltd) of the British Virgin Islands, PrimeXBT of Saint Lucia, CoinEx of Hong Kong, Remitano of Singapore, Poloniex from Boston, BitMEX in Seychelles, and LCX in Liechtenstein, as per the press release.
Billions in Assets Under Scrutiny
The crackdown extends to platforms with significant market presence. Among the 25 targeted exchanges are BingX, ProBit Global, AscendEX, Zoomex, and several others that collectively hold more than $9 billion in assets.
Together, 14 of these exchanges recorded around $20 billion in trading volume in the last 24 hours, according to CoinMarketCap data.
Despite the government’s directive, many of these platforms remain accessible in India as of now.
Mark Taylor, head of financial crime at CEX.IO, said the exchange is preparing a formal response to the notice. In an emailed statement, he mentioned that the company is “in the research process” and intends to present its position to the regulator.
He added that CEX.IO is actively exploring ways to align with India’s regulatory requirements and complete any necessary registrations to ensure long‑term access for its users in the country.
Other exchanges, including BingX, LBank, CoinW, and ProBit Global, did not respond to requests for comment.
Compliance Rules and Warnings for Users
In March 2023, the finance ministry brought crypto platforms under India’s anti‑money laundering rules. Any platform that lets users exchange crypto for cash, transfer or store digital assets, or manage them in any way must register with FIU‑IND and follow reporting requirements.
“These obligations are activity‑based and are not contingent on physical presence of the entity in India,” the ministry reiterated, adding that reporting, record‑keeping, and registration are mandatory under the PMLA.
The government also issued a public warning about the risks of using unregulated crypto products and NFTs. “It must be mentioned that the crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions,” the statement said.
Growing List of Registered Platforms
So far, 50 VDA service providers have registered with FIU‑IND. The regulator continues to identify and act against those catering to Indian users without registering, leaving them outside the AML‑CFT framework.
The FIU has previously taken similar actions against major platforms such as Binance, Coinbase, KuCoin, and OKX. OKX pulled out of the Indian market in 2024, but Binance returned the same year in August after completing its FIU‑IND registration.
Coinbase returned to India earlier this year and has begun offering an early‑access program for local users as part of its plan to fully resume services.
With this latest crackdown, the government is making it clear that offshore crypto platforms must follow Indian regulations or risk losing access to one of the world’s biggest crypto markets.