India Registers 49 Crypto Exchanges Under AML Framework

India’s Financial Intelligence Unit (FIU-IND) has confirmed that 49 cryptocurrency exchanges now operate as registered reporting entities under the country’s anti-money laundering framework. The milestone comes as the government maintains its cautious approach to full crypto regulation.

The FIU’s 2024-25 fiscal year report, accessed on January 5, 2026, details the successful integration of Virtual Digital Asset (VDA) service providers into the Prevention of Money Laundering Act (PMLA). This registration process began in early 2023.

BREAKING: 🇮🇳 49 crypto exchanges registered with Financial Intelligence Unit (FIU) in FY 2024–25

– 45 India-based, 4 offshore platforms

– ₹28 crore in penalties imposed on non-compliant exchanges during the year. pic.twitter.com/mrPwsYgqpf

— Crypto India (@CryptooIndia) January 6, 2026

Of the 49 registered entities, 45 are domestically based Indian platforms. The remaining four are offshore exchanges that completed the rigorous compliance requirements. All registered platforms must now actively monitor and report suspicious financial activity to federal authorities.

The registration framework provides the Indian government with detailed oversight of domestic crypto operations. Exchanges must determine beneficial ownership of wallets and track transfers between hosted and unhosted addresses.

India Cracks Down on Crypto Crime

The FIU’s annual report includes strategic analysis of Suspicious Transaction Reports (STRs) submitted by the 49 registered exchanges. The agency flagged crypto assets as a primary target for serious criminal exploitation.

Several red-flag categories emerged from the analysis. These include the use of crypto funds for hawala transactions, illegal gambling operations, and elaborate fraudulent schemes targeting investors.

In one case, the FIU successfully tracked an illegal adult content website through monitoring VDA flows. This surveillance capability is now mandatory for all registered exchanges operating in India.

Non-compliant platforms faced significant consequences during the fiscal year. The FIU imposed total penalties amounting to 28 crore rupees on platforms failing to meet regulatory standards.

The enforcement actions signal the end of voluntary or lax compliance in the Indian crypto market. Exchanges must now meet strict reporting obligations or face substantial financial penalties.

Government Resists Full Regulatory Framework

Meanwhile, a September 2025 government document reveals India’s reluctance to create comprehensive crypto legislation. The document, seen by Reuters, outlines concern about systemic risks from mainstream financial integration.

The Reserve Bank of India maintains that containing crypto risks through regulation would prove difficult in practice. According to the document, regulating cryptocurrencies would grant them legitimacy.

Full regulation “may cause the sector to become systemic,” the government document stated. This position contrasts with India’s 2023 call for global crypto framework during its G20 presidency.

🚨BREAKING: 🇮🇳 India won’t bring a full crypto law, says it could create systemic risks & hurt UPI.

🔑 Key takeaways:

Regulating crypto may legitimize it & make it systemic

A ban won’t stop peer-to-peer or DEX trades

Stablecoins pegged to the US dollar could fragment India’s… pic.twitter.com/aYKNCX3ou5

— Crypto India (@CryptooIndia) September 10, 2025

An outright ban presents its own challenges. The document acknowledges that prohibition cannot address peer-to-peer transfers or trades on decentralized exchanges.

India prepared a bill to ban private cryptocurrencies in 2021 but never proceeded with the legislation. In 2024, the government deferred a planned discussion paper on crypto policy.

Officials stated they would review the issue after the United States formalized its approach to cryptocurrencies. The federal finance ministry and RBI did not respond to Reuters’ request for comment.

Currently, global crypto exchanges can operate in India after registering with the FIU for anti-money laundering due diligence. Punitive taxes apply to gains from cryptocurrency trading.

The central bank has repeatedly cautioned against crypto risks. These warnings have contributed to a near freeze in trading between India’s formal financial system and cryptocurrencies.

Indian investors currently hold approximately $4.5 billion in various cryptocurrencies. The government document noted that current crypto usage is neither significant nor a systemic risk to financial stability.

Following this assessment, India appears committed to its partial oversight approach. The country maintains AML registration requirements while avoiding legislation that could legitimize the broader crypto sector.