Financial Intelligence Unit of India (FIU-IND) has confirmed that 49 cryptocurrency exchanges have completed anti-money laundering (AML) registration in India, marking a significant step in bringing the country’s digital asset sector under formal regulatory oversight.
The disclosure was made in FIU-IND’s FY 2024–25 annual report, released this week.
According to the report, 45 of the registered platforms are domestic exchanges, while four are offshore operators that have successfully complied with India’s AML registration requirements.
The registrations place these firms under the reporting obligations of the Prevention of Money Laundering Act (PMLA), which was extended to cover virtual digital asset (VDA) service providers in early 2023.
FIU-IND said the growing number of registered exchanges reflects the gradual integration of crypto businesses into India’s financial compliance framework.
As reporting entities, registered platforms are required to conduct customer due diligence, monitor transactions, and submit suspicious transaction reports to federal authorities.
The agency described this framework as a regulatory “moat” that enables granular oversight of crypto-related financial flows and helps curb money laundering and terrorist financing risks.
The report also highlighted FIU-IND’s enforcement actions over the past fiscal year. During FY 2024–25, the agency imposed penalties totaling INR 2.8 billion (approximately $34 million) on entities found to be in violation of AML obligations.
While the report did not break down penalties by sector, crypto exchanges and other VDA service providers have been a key focus of enforcement since the PMLA expansion.
India has taken a strict but structured approach to regulating crypto markets. While trading and holding digital assets remain legal, exchanges must comply with AML rules, tax reporting requirements, and transaction monitoring standards.
Offshore platforms serving Indian users have also faced scrutiny, with FIU-IND warning that non-compliant operators could face fines, website blocking, or other enforcement measures.
Industry participants view the rising number of registered exchanges as a sign of regulatory clarity, even as compliance costs increase. By formalizing oversight of crypto platforms, Indian authorities aim to balance innovation with financial integrity, ensuring that the fast-growing VDA sector operates within the country’s broader anti-money laundering and counter-terror financing regime.