The landscape of cryptocurrency in India is evolving, as the government moves to enforce more stringent regulations aimed at fostering transparency and security in transactions. Recent changes underscore the importance of oversight to combat instances of fraud and illegal activities linked to digital currencies.
According to official reports, nearly 50 cryptocurrency exchanges have formally registered with India’s Financial Intelligence Unit (FIU) in the fiscal year 2024-25. This includes 45 based in India and four located overseas, marking a significant shift in how digital currency operations are monitored.
New Protocols for Registered Exchanges
This surge in registrations categorizes these exchanges as reporting entities under the Prevention of Money Laundering Act. This legislation mandates them to submit Suspicious Transaction Reports, identify the beneficiaries of transactions, and provide detailed contact information, enhancing the ability of regulators to track unusual or suspicious financial flows.
50 crypto exchanges now registered, increasing accountability in the market.
This shift is paving the way for a more stable ecosystem that encourages innovation.
It’s an exciting time for informed traders and investors!
— Rahul Sharma (@rahulcrypto) January 6, 2026
Enforcement Actions and Consequences
There have been significant enforcement actions in the previous year. Regulators imposed fines amounting to about ₹28 crore on exchanges that failed to comply, translating to approximately $3.1 million. Additionally, the FIU has issued notices against several offshore platforms that did not meet necessary registration and compliance requirements.
Authorities identified problematic trends through a detailed analysis of Suspicious Transaction Reports indicating misuse. Notable red flags included activities resembling hawala transactions, gambling operations, links to darknet markets, and associations with funding terrorist activities. Such findings were instrumental in heightening regulatory scrutiny.
Focus on Offshore Platforms
The FIU has also taken decisive steps against around 25 offshore exchanges servicing Indian clients without local registration. Notable platforms receiving attention include BitMEX, LBank, and Paxful among others. Using powers from the Prevention of Money Laundering Act and the Information Technology Act, these platforms face blocks that restrict access within India.
For traders, this shift means expecting more rigorous Know Your Customer (KYC) requirements and detailed scrutiny of transactions between wallets and banks. Registered exchanges will be under greater compliance obligations, which may lead to increased procedural requirements. Users who opt to use unregistered foreign platforms may find themselves at risk of losing access if these services are restricted in India.
Image credits: Unsplash, data visualizations from TradingView
