India Issues Notices to 15 Crypto Platforms, Initiates Takedown

India's Financial Intelligence Unit (FIU-IND) has issued notices to 15 offshore virtual digital asset (VDA) service providers for failing to comply with the Prevention of Money Laundering Act (PMLA), 2002. The action targets platforms serving Indian users that have not registered with FIU-IND, as required by law.

Additionally, directions have been issued under the Information Technology Act, 2000, to initiate the blocking of applications and URLs associated with these platforms in India. VDA service providers operating in India, regardless of their physical location, are mandated to register with FIU-IND as reporting entities. This includes platforms involved in exchanging VDA for fiat currency, transferring VDA, or providing safekeeping services.

The platforms are also obligated to adhere to reporting, record-keeping, and other requirements under the PMLA, based on the services they offer. VDA service providers were brought under India's anti-money laundering and counter-terrorism financing framework in March 2023. This move is part of an ongoing effort to regulate the digital asset space.

This action follows a similar move in October 2025, when FIU-IND issued notices to 25 other offshore VDA service providers and requested their online services be blocked. The latest crackdown occurs amid ongoing discussions within India regarding the regulatory treatment of crypto assets.

While India does not recognize cryptocurrencies as legal tender, platforms offering VDA services to Indian users fall under the country's anti-money laundering regulations. The government has consistently warned investors about the significant risks associated with crypto assets and non-fungible tokens due to the unregulated nature of the market.