India Cracks Down on 25 Unregistered Offshore Crypto Exchanges Over Money Laundering Fears
India’s financial intelligence agency, the Financial Intelligence Unit-India (FIU-IND), has taken a decisive step against 25 offshore cryptocurrency exchanges. These platforms have been issued non-compliance notices for failing to register with Indian authorities and adhere to the nation’s stringent Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) mandates. This regulatory action underscores India’s commitment to fortifying its financial ecosystem against illicit activities, prompting an immediate directive for these exchanges to cease operations and withdraw their websites and mobile applications from public access within the country.
The Regulatory Imperative and Economic Scale of Non-Compliance
The FIU-IND’s intervention is rooted in the Prevention of Money Laundering Act (PMLA), which empowers the regulator to enforce strict oversight on entities facilitating financial transactions. Among the 25 offshore exchanges targeted, several prominent names like BingX, LBank, CoinW, ProBit Global, BTCC, AscendEX, Zoomex, and Poloniex are included. Data from CoinMarketCap reveals the significant scale of these operations, with 14 of the affected exchanges alone holding assets exceeding $9 billion and recording a staggering $20 billion in trading volume within a single 24-hour period. This highlights the immense financial flows that have been operating without the necessary regulatory scrutiny, posing potential risks for money laundering and financial terrorism. While the notices have been issued, the affected platforms, including key players like BingX, LBank, CoinW, and ProBit Global, have yet to issue any public statements regarding India’s directive.
This assertive stance by Indian authorities serves as a clear warning to cryptocurrency exchanges worldwide: operating within a sovereign nation’s borders necessitates adherence to its financial laws and regulatory frameworks. The move reinforces the global push for greater accountability and transparency in the rapidly evolving digital asset landscape, emphasizing that innovation must not come at the cost of financial integrity and national security. It highlights a critical juncture for both regulators and crypto platforms in establishing a compliant and secure operational environment.
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