India’s Financial Intelligence Unit Cracks Down on Offshore Crypto Platforms, Issues Show-Cause Notices

The Financial Intelligence Unit of India (FIU-Ind) has issued show-cause notices to nine offshore virtual digital asset service providers, including prominent names such as Binance, Bitfinex, MEXC Global, and Kraken. The notices were served based on allegations of non-compliance with the Prevention of Money Laundering Act (PMLA).

In a further step, the FIU has appealed to the Ministry of Electronics and Information Technology to block the URLs of these entities, asserting that they are operating unlawfully without adhering to PMLA provisions in India.

Notable virtual digital asset and cryptocurrency operators Kucoin, Huobi,, Bittrex, and Bitstamp have also received show-cause notices.

The FIU, serving as the nation’s central agency, holds the responsibility for receiving, processing, and disseminating information related to suspicious financial transactions, encompassing issues of money laundering and terror financing, to enforcement agencies worldwide.

In a significant development, anti-money laundering guidelines and reporting requirements are now applicable to offshore cryptocurrency exchanges catering to the Indian market. This move signals a heightened regulatory focus on the crypto sector, aiming to ensure compliance and transparency in financial transactions within the country. Authorities are extending measures to oversee and regulate offshore platforms operating in the Indian crypto space, reinforcing the commitment to combat illicit financial activities and enhance security in the digital asset ecosystem.