India’s Financial Intelligence Unit-India issued notices to 25 crypto exchanges for AML violations, including Huione, BingX, and Paxful. The affected exchanges collectively manage billions in user assets, with 14 generating over $22 billion in trading volume. India’s AML enforcement against offshore platforms comes amid a tightening policy stance.

The finance ministry confirmed that the 25 exchanges must withdraw their apps and websites from public access in India. Despite lacking comprehensive crypto legislation, India brought VASPs under the PMLA in 2023. Heavy taxation and compliance requirements have reduced domestic trading volumes, but global exchanges can operate if registered with FIU-IND.

Over 50 crypto exchanges have registered with FIU-IND, indicating rising compliance. Binance, Coinbase, KuCoin, and OKX faced enforcement actions in 2023 and 2024. OKX ultimately left India, while others resumed operations after paying fines and registering locally. Despite restrictions, India remains the global leader in crypto adoption, attracting offshore exchanges.

India plans to implement the OECD’s CARF by April 2027 for automatic global reporting of crypto transactions. The country aims to sign the MCAA for automatic tax information exchange, extending coverage to digital assets. The global reporting system will track investors’ overseas coins and report offshore CEX trades for enhanced compliance and transparency.

Read more at Yahoo Finance: India Cracks Down on 25 Crypto Exchanges Over AML Compliance Failures