India’s Financial Intelligence Unit (FIU-IND) has taken a hard stance against offshore cryptocurrency exchanges. The regulator issued notices to 25 platforms operating without meeting anti-money laundering requirements. This marks one of the country’s most aggressive enforcement moves in the digital asset sector to date.

Why the Crackdown?

The FIU flagged that many offshore exchanges serving Indian users have failed to register or comply with India’s Prevention of Money Laundering Act. By bypassing local rules, these platforms pose risks for illicit transactions and undermine investor protection.

The government stressed that crypto businesses providing services in India must follow the same compliance standards as local firms.

Which Platforms Are Affected?

While the FIU did not publicly release the full list, reports indicate that several well-known offshore exchanges are under scrutiny. Platforms offering trading, custody, or token sales without proper licenses could face penalties, blocks, or even bans.

Impact on Indian Crypto Users

For Indian traders, the crackdown may limit access to some popular offshore platforms. Users could see restrictions on deposits, withdrawals, and trading activity. Regulators argue that tighter controls will reduce fraud, market manipulation, and money laundering risks.

Domestic exchanges that already comply with AML rules may benefit, as traders move toward safer and legally recognized platforms.

Industry Reaction

The move has sparked debate in the crypto community. Some applaud the FIU for prioritizing investor safety and pushing for a more transparent market. Others warn that heavy restrictions could drive Indian crypto activity further underground or push users toward decentralized, noncustodial platforms.

Conclusion

India’s latest enforcement action signals a new phase in its crypto regulation strategy. Offshore exchanges can no longer operate freely without meeting local AML standards. The coming months will determine whether this move strengthens the country’s digital asset ecosystem or creates new challenges for traders seeking global access.