Breaking: FIU Tightens Rules for Indian Crypto Exchange Platforms

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India is stepping up regulation of the crypto sector, with 49 cryptocurrency exchanges officially registered with the Financial Intelligence Unit (FIU) during the 2024–25 financial year. This move is part of the government’s effort to bring digital asset activity under stricter anti-money laundering (AML) and counter-terror financing controls, as concerns rise over crypto misuse in criminal activities.

According to the FIU report for the 2024–25 financial year, accessed by PTI, the registration follows a review of Suspicious Transaction Reports (STRs) submitted by crypto platforms. The FIU found that crypto funds were repeatedly used for high-risk activities, including scams, fraud, gambling networks, unaccounted transfers, and peer-to-peer abuse. Some cases were even linked to darknet services, terror financing, and child sexual abuse material, highlighting how crypto anonymity can be exploited if left unregulated.

Out of the 49 registered platforms, 45 are based in India, while four operate overseas. Unlike other countries where multiple agencies oversee crypto, India has appointed the FIU, under the Ministry of Finance, as the single authority monitoring exchanges.

49 crypto exchanges are already FIU registered, and 100s more that are not.

The crypto market in India is far more competitive than most people think.

IMO, Healthy competition is good for the ecosystem as it promotes innovation