India Cracks Down on 25 Crypto Exchanges Over AML Compliance Failures

India's cryptocurrency regulatory landscape intensified as authorities cracked down on 25 crypto exchanges for anti-money laundering (AML) compliance failures. The Financial Intelligence Unit (FIU) has escalated enforcement actions against offshore cryptocurrency platforms operating in the country, signaling stricter oversight of the digital asset ecosystem.

Multiple cryptocurrency exchanges received official notices from regulators, prompting several platforms to voluntarily withdraw services from Indian users. Some exchanges have opted to pay substantial penalties while pursuing registration under the Prevention of Money Laundering Act (PMLA) to maintain market access.

Despite regulatory pressures, cryptocurrency adoption continues to grow across India's blockchain ecosystem. Bitcoin, Ethereum, and other digital assets remain popular among Indian investors, though compliance requirements are reshaping the market dynamics.

The implementation of Common Reporting Standard for Crypto Assets and Funds (CARF) will enhance cross-border transparency in cryptocurrency transactions. This development aligns with global efforts to standardize crypto regulation and combat money laundering in DeFi protocols and centralized exchanges.

The crackdown reflects India's commitment to balancing cryptocurrency innovation with financial security, potentially impacting trading volumes and market accessibility for domestic crypto enthusiasts.