India Tightens Crypto Oversight: 49 Exchanges Registered, Unregistered Platforms Face Scrutiny
India's financial regulators are escalating efforts to bring cryptocurrency transactions under stricter supervision. Nearly 50 exchanges—45 domestic and four foreign—registered with the Financial Intelligence Unit (FIU) in FY 2024-25, subjecting them to anti-money laundering protocols. These platforms must now file Suspicious Transaction Reports, verify wallet beneficiaries, and disclose banking details.
Non-compliant operators faced penalties totaling ₹28 crore ($3.1 million) last fiscal year, with enforcement actions including fines and access blocks. The regulatory squeeze coincides with a thriving but fragmented market—hundreds of unregistered exchanges continue operating despite heightened risks.
Industry leaders like CoinDCX's Sumit Gupta frame the crackdown as ecosystem maturation: "Healthy competition promotes innovation," he tweeted, acknowledging the market's underestimated dynamism. The measures aim to curb illicit flows while accommodating India's rapidly evolving crypto landscape.
