Crypto Takedown Notices Issued
India Seeks Takedown of 15 Offshore Crypto Platforms Over Compliance Violations
Anonymous
Key Points
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The FIU-IND issued the noncompliance notices under Section 13 of the Prevention of Money Laundering Act, 2002, while the takedown requests relied on Section 79(3)(b) of the Information Technology Act and Rule 3(1)(d) of the 2025 intermediary rules.
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The targeted firms were described as small and medium-sized operators, distinguishing the action from earlier enforcement involving larger global exchanges.
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India’s definition of regulated virtual digital asset service providers also covers businesses offering custody or administration of digital assets, or instruments that enable control over those assets—not only exchanges and transfer services.
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The named platforms include several lesser-known services beyond the exchanges highlighted in the summary, including Rezorex, Latoken, ChangeNow, SimpleSwap, FixedFloat and Guardarian.
India's Financial Intelligence Unit issued noncompliance notices to 15 offshore crypto platforms—including Weex, Blofin, Bitunix, DigiFinex, and Toobit—for serving Indian users without registering under anti-money laundering rules. Finance Feeds reports the FIU-IND requested that these platforms' apps and websites be removed from public access, tightening enforcement on a sector India deems unregulated and high-risk.
The action marks a shift from blocking large exchanges like Binance and Coinbase toward smaller, lesser-known offshore operators. Crypto Economy notes that virtual digital asset providers have been required since March 2023 to register with FIU-IND and meet know-your-customer and suspicious-transaction reporting rules, regardless of physical location.
India Expands AML Rules to Offshore Crypto Firms
India's regulatory framework targets any platform serving Indian users, not just domestic exchanges. The Block reports the FIU-IND action relies on Section 13 of the Prevention of Money Laundering Act and Section 79(3)(b) of the Information Technology Act. Virtual asset custodians and services enabling control over digital assets now face the same registration and reporting duties as exchanges.
The 15 flagged platforms also include lesser-known services: Rezorex, Latoken, ChangeNow, SimpleSwap, FixedFloat, and Guardarian. Smaller operators face higher compliance costs and potential loss of Indian access. Earlier restrictions on Bybit, Coinbase, and Binance showed that blocked services can resume once firms address FIU-IND requirements.
App Blocking as a Faster Enforcement Tool
Removal of applications and websites from public access cuts user acquisition faster than traditional money-laundering penalties alone. Finance Feeds explains that blocking delivers immediate pressure on offshore providers with few attachable assets in India. The tactic sidesteps lengthy compliance litigation while enforcement proceedings continue under anti-money laundering law.
This approach reshapes competition among crypto exchanges. Platforms willing to register, verify users, and file suspicious-transaction reports gain greater continuity and customer trust. Noncompliant offshore exchanges must either meet India's rules or risk losing access to one of the world's largest crypto user bases.
India Warns of Crypto's Lack of Protection
The Finance Ministry has repeatedly warned that crypto assets and NFTs remain unregulated in India and carry significant risks. Crypto Economy reports the government emphasizes that losses on unregulated platforms offer no regulatory recourse. The messaging underscores India's intent to channel all crypto activity through registered, compliant providers.
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