India’s Crypto Crackdown: 49 Exchanges Now Registered as Unregistered Platforms Multiply
India's financial regulators just slammed the rulebook on the table—and crypto exchanges are scrambling to find their seats.
The Compliance Divide
Forty-nine platforms have officially registered with the Financial Intelligence Unit (FIU), stepping into the regulated light. Meanwhile, a shadow market of unregistered exchanges is ballooning, operating in a regulatory grey zone that's getting darker by the minute. It's a classic tale of two markets: one playing by the book, the other writing its own chapters.
Gatekeepers Get Serious
The FIU isn't just taking names—it's building a wall. Registered exchanges now face stringent anti-money laundering (AML) and know-your-customer (KYC) protocols, while app stores have been instructed to delist the non-compliant. This move doesn't just tighten oversight; it actively strangles the oxygen supply to the off-grid sector. Think of it as regulatory Darwinism—only the compliant survive.
The Investor's Dilemma
For the everyday trader, this creates a stark choice: the safety and scrutiny of a registered platform or the wild-west promises of an unregistered one. One offers legitimacy with paperwork; the other offers anonymity with risk. It's the financial equivalent of choosing between a licensed surgeon and a back-alley procedure—both might get the job done, but only one comes with a warranty.
India's move signals a global trend: nations are no longer content to watch crypto from the sidelines. They're drafting the playbook, appointing referees, and ejecting players who won't wear the uniform. The era of 'ask for forgiveness, not permission' is closing its final chapter in finance—proving that even the most disruptive technologies eventually meet their oldest adversary: the taxman.
Exchanges Register With FIU
The registrations make the exchanges reporting entities under the Prevention of Money Laundering Act. They are now required to file Suspicious Transaction Reports, identify wallet beneficiaries, and disclose bank accounts and platform contact details to the FIU. These steps aim to make it easier for authorities to trace large or unusual flows of funds.
49 crypto exchanges are already FIU registered, and 100s more that are not.
The crypto market in India is far more competitive than most people think.
IMO, Healthy competition is good for the ecosystem as it promotes innovation
https://t.co/5BAS86eBEh
— Sumit Gupta (CoinDCX) (@smtgpt) January 6, 2026
Regulatory Action And Penalties
Last year saw concrete enforcement. Regulators imposed fines totaling about ₹28 crore on non-compliant platforms during FY 2024–25, a figure that media reports have translated to roughly $3.1 million. At the same time, the FIU issued notices and ordered blocks against a group of offshore platforms that had failed to register or meet anti-money-laundering obligations.
Authorities say the MOVE followed strategic analysis of Suspicious Transaction Reports that flagged patterns of misuse. Reported red flags included hawala-style transfers, gambling and fraud schemes, instances tied to darknet services, and links to terror financing and child sexual abuse material. Those findings helped shape the decision to escalate oversight and enforcement.
The FIU sent notices to and ordered the takedown of access for a list of about 25 offshore exchanges that were serving Indian users without registering. Several mainstream news outlets and legal newsletters named platforms such as BitMEX, LBank, Paxful, CEX.IO and others among those targeted. These actions used powers under the Prevention of Money-Laundering Act and the Information Technology Act to block apps and web access in India.
For traders and savers, the drift is clear: expect stricter KYC checks and closer monitoring of transfers between wallets and bank accounts. Registered exchanges will likely have more compliance steps and reporting duties. That can mean extra paperwork and, in some cases, higher costs as platforms absorb compliance expenses. At the same time, users who rely on unregistered overseas platforms risk losing access if those services are blocked domestically.
Featured image from Unsplash, chart from TradingView
