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India's Financial Intelligence Unit issued non-compliance notices on Wednesday to 15 offshore crypto platforms under the Prevention of Money Laundering Act, including WOO X, DigiFinex, WhiteBIT, Toobit, Blofin, Bitunix, and Weex. The agency also asked for the platforms' apps and URLs to be taken down from public access, arguing the entities were operating illegally in India without meeting PMLA obligations. The other platforms named were Rezorex, XT.com, Latoken, Pionex, ChangeNow, SimpleSwap, FixedFloat, and Guardarian.
Why it matters
The push builds on India's March 2023 decision to extend its anti-money-laundering and counter-financing of terrorism framework to virtual digital asset (VDA) service providers, regardless of whether the entity has a physical presence in the country. That move pulled every exchange serving Indian users into the FIU registration regime, along with reporting and record-keeping requirements that mirror those already applied to banks and brokers. The Finance Ministry has been explicit that the obligations are not contingent on a domestic footprint, closing the loophole offshore venues previously relied on.
Market impact
The pattern of enforcement is well established. Bybit restricted services in India on January 12, 2025 while completing its FIU registration and later restored full access, Coinbase resumed onboarding Indian users after registering, and Binance re-entered the market in 2024 after paying a $2.25 million penalty. The FIU used Wednesday's notices to reiterate that crypto products and NFTs remain unregulated in India, warning that Indian users transacting on these platforms may have no regulatory recourse for losses. Offshore venues that have not registered now face the choice of compliance, geofencing, or service withdrawal.
Frequently asked questions
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Which platforms did India's FIU target?
The FIU named 15 platforms: WOO X, DigiFinex, WhiteBIT, Toobit, Blofin, Bitunix, Weex, Rezorex, XT.com, Latoken, Pionex, ChangeNow, SimpleSwap, FixedFloat, and Guardarian.
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What law are these platforms accused of violating?
The Prevention of Money Laundering Act (PMLA). The FIU argued the entities are operating illegally in India without meeting the relevant obligations.
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How does India have jurisdiction over offshore exchanges?
India's March 2023 AML/CFT framework expansion explicitly covers all VDA service providers serving Indian users, regardless of whether the entity has a physical presence in the country.
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Have other offshore exchanges already complied with FIU registration?
Yes. Bybit restricted India services on January 12, 2025 while completing its FIU registration, Coinbase resumed onboarding Indian users after registering, and Binance paid a $2.25M penalty to return in 2024.
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What is the FIU asking for beyond the notices?
The agency is seeking takedown of the platforms' apps and URLs from public access in India. The FIU also reiterated that crypto products and NFTs remain unregulated in India, warning that users may have no regulatory recourse for losses.
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