India Crypto AML Rules Bring 49 Exchanges Under FIU Oversight

India is making the control stricter over the crypto industry. According to a new report from the Financial Intelligence Unit of India (FIU-IND), 49 cryptocurrency exchanges have completed anti-money laundering registration during the 2024-25 financial year.

Out of these, 45 are Indian exchanges, while four are offshore platforms. The India Crypto AML update shows that India is pushing crypto businesses to follow the same financial rules as banks and payment firms.

FIU Imposes Heavy Fines on Rule Breakers

The FIU-IND report also showed strong enforcement action. In the last financial year, authorities imposed INR 2.8 billion in penalties on crypto platforms that didn’t follow India’s crypto AML rules.

These fines mostly targeted the exchanges that did not register, report transactions or follow customer verification requirements. Indian regulators have made it very clear that they won’t allow crypto platforms to work without proper rules.

Also, FIU-IND keeps an eye on financial activity across the country. It aims to stop money laundering, fraud, and terror financing, and crypto exchanges are now fully under its control.

What AML Registration Means for Crypto Platforms

To operate legally in India, crypto exchanges must first be registered with FIU-IND. After the registration, platforms must then follow strict Know Your Customer (KYC) and reporting rules. Also, exchanges must verify the user identities and track transactions. Further, they must report any activity they think is suspicious. Therefore, these steps aims to reduce any illegal use of digital assets.

While the rules increase costs for exchanges, it also gives them more legal clarity. Registered platforms can continue serving Indian users without being scared of any sudden bans.

Offshore Exchanges Face More Pressure

India is also making the rules more strict on the foreign platforms. The registration of four offshore exchanges shows that regulators expect the global firms to follow Indian laws.

Before, India blocked websites and payment access for the non-compliant foreign exchanges, and some platforms even chose to leave the market. Others have now decided to register and follow the rules instead of that. This move goes to show how India is a key crypto market, even with all the strict rules and high taxes.

What This Means for Crypto in India

The FIU-IND’s report sends a pretty clear message. India is not banning crypto, but it now has strict rules. Due to this, more registrations say that the crypto industry is adjusting. However, heavy fines show that the enforcement will remain tough.

Going forward, compliant exchanges may gain more user trust. At the same time, regulators are most likely to increase monitoring. Overall, crypto in India is moving towards stronger rules, more control and better accountability.