India Targets 25 Offshore Crypto Firms With AML Violations in FIU Crackdown

India's Financial Intelligence Unit (FIU) has issued compliance notices to 25 offshore cryptocurrency platforms for anti-money laundering (AML) violations, marking a significant escalation in the country's crypto regulatory crackdown. This enforcement action targets international exchanges operating without proper registration, including major platforms serving Indian users trading Bitcoin, Ethereum, and other digital assets.

The regulatory sweep reinforces India's commitment to strengthening cryptocurrency oversight while protecting domestic investors from unregulated offshore platforms. These compliance notices require immediate adherence to AML protocols and formal registration procedures, potentially restricting access to popular international crypto exchanges and DeFi platforms.

This development signals India's broader strategy to formalize cryptocurrency operations within its jurisdiction, following recent tax implementations on crypto transactions. The crackdown could impact trading volumes and market accessibility for Indian cryptocurrency investors, while pushing the sector toward greater regulatory compliance.

Market analysts suggest this regulatory clarity, though restrictive, may ultimately benefit legitimate blockchain businesses and licensed domestic exchanges. The enforcement action underscores India's evolving approach to cryptocurrency regulation, balancing innovation with financial security concerns in the rapidly growing digital asset ecosystem.