India Targets 25 Crypto Exchanges for AML Non-Compliance
- FIU-India issues AML notices to 25 crypto exchanges.
- Potential URL bans if registration requirements unmet.
- $9 billion in assets potentially affected.
India’s Financial Intelligence Unit has notified 25 offshore crypto exchanges, including BingX and LBank, for failing to comply with anti-money laundering regulations, risking potential URL bans.
This crackdown could destabilize crypto markets, impacting over $9 billion in managed assets and leading to user migration to compliant platforms, further straining India’s regulatory relations in the crypto sector.
India’s Financial Intelligence Unit has issued notices to 25 offshore crypto exchanges, including BingX and LBank, for failing to comply with anti-money laundering regulations.
The enforcement reflects India’s stringent stance on money laundering, affecting billions in digital assets and major cryptocurrencies used on these platforms.
FIU India Targets Offshore Exchanges with AML Notices
The recent action by India’s Financial Intelligence Unit targets offshore exchanges like BingX and LBank for AML violations. Notices were issued under the Prevention of Money Laundering Act, threatening URL bans. Key exchanges including CoinW and CEX.IO are among those implicated, urging compliance. The FIU’s actions emphasize the importance of registration and adherence to AML rules.
Over $9 Billion in Assets At Risk
The financial impact is notable, with exchanges managing over $9 billion in assets. BTC, ETH, and USDT may face withdrawal issues due to regulatory action. Compliance pressures cause market uncertainty, potentially leading to capital flight. No public responses from the exchanges have been released yet, highlighting ongoing regulatory challenges.
“Virtual digital asset service providers must register and fulfill KYC and transaction reporting requirements to mitigate money laundering/terror financing risks.” — Financial Intelligence Unit (FIU-INDIA)
Past Enforcement Led to Platform Shutdowns
In 2023, similar enforcement led to URL blocks on major platforms like Binance. Past actions resulted in compliance shifts or operational suspensions by non-compliant exchanges. Based on past trends, capital and user flows might shift to compliant platforms. Regulatory focus remains on KYC/AML, not cryptocurrency prohibition.
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