India Tightens Crypto Oversight as FIU Registers 49 Exchanges Amid AML Crackdown
India's Financial Intelligence Unit (FIU) has brought 49 cryptocurrency exchanges under formal registration for the 2024–25 fiscal year, marking a decisive step toward curbing illicit financial flows. The move follows forensic analysis of Suspicious Transaction Reports (STRs) revealing crypto's role in scams, darknet markets, and even terror financing.
Domestic platforms dominate the registry with 45 Indian exchanges, while four foreign operators face heightened scrutiny. Unlike fragmented regulatory approaches elsewhere, India consolidates oversight under the Finance Ministry's FIU—a structural advantage for enforcing anti-money laundering (AML) controls.
The crackdown reflects global trends toward exchange accountability but leaves hundreds of unregistered platforms operating in regulatory limbo. Market participants note the irony: while compliance costs rise for registered entities, India's crypto ecosystem remains paradoxically competitive.
