India has intensified its crypto crackdown, with the Financial Intelligence Unit-India (FIU-IND) issuing notices to 25 offshore exchanges, including Huione, BingX, Paxful, LBank, CoinW, and ProBit Global, for violating anti-money laundering (AML) rules. The finance ministry also ordered them to withdraw their apps and websites from public access.
The affected platforms collectively handle billions in assets, with 14 generating over $22 billion in daily trading volume, according to CoinMarketCap. The move follows India’s 2023 decision to bring virtual asset service providers (VASPs) under the Prevention of Money Laundering Act (PMLA), requiring FIU registration and reporting.
India’s crypto regulation relies on strict compliance and heavy taxation, including a 30% gains tax and 1% TDS, which has reduced local trading. Exchanges like Bybit have resumed operations after paying fines and registering, while others, including Binance and KuCoin, faced enforcement actions and temporary suspensions before returning.
Despite the tough environment, crypto adoption remains strong. India ranks first globally in the 2025 Chainalysis Adoption Index, with on-chain activity up 69% year-over-year and transaction volumes in the region jumping from $1.4 trillion to $2.36 trillion.
India is also preparing for tighter global reporting. It plans to implement the OECD’s Crypto-Asset Reporting Framework (CARF) by April 2027 and sign the Multilateral Competent Authority Agreement (MCAA) next year, enabling automatic reporting of offshore crypto holdings. Authorities will be able to track cross-border transactions, including past activity, and pursue undisclosed income.
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