india cracks down on 25 crypto exchanges including bingx, lbank, coinw over compliance failures

Indian Government Targets Offshore Crypto Exchanges

A number of offshore crypto platforms managing substantial assets are now under scrutiny by the Indian government. This action stems from a move by the nation’s financial intelligence unit against 25 exchanges.

Non-Compliance with Anti-Money Laundering Regulations

The Financial Intelligence Unit India (FIU-IND) has issued official notices to 25 crypto exchanges. These exchanges are accused of failing to register and adhere to the country’s anti-money laundering regulations, as stated by the Indian finance ministry on Wednesday.

The regulator has directed these platforms to remove their applications and websites from access within India. However, as of the latest reports, a majority of these platforms remain accessible to users.

Significant Assets at Stake

Data from CoinMarketCap indicates that 14 of the 25 exchanges in question collectively hold assets exceeding $9 billion. Furthermore, these platforms have processed approximately $20 billion in trading volume within the last 24-hour period.

Exchange Responses and User Impact

Mark Taylor, head of financial crime at CEX.IO, stated the company is actively researching the matter. They intend to clarify their position to the regulator regarding the notice received.

CEX.IO is focused on finding ways to align with India’s regulatory demands and secure the necessary registration with Indian authorities. This is to ensure continued service availability for their users in the region.

Currently, no immediate changes have been implemented on the platform for Indian users. However, the company advises customers to closely monitor communications from both regulators and CEX.IO.

Users should be aware of potential restrictions on access, local payment methods, or app availability. Any impact on accounts or services will be communicated transparently, with guidance provided on subsequent steps.

Requests for comment sent to other affected exchanges, including BingX, LBank, CoinW, and ProBit Global, have not yet received responses.

Regulatory Framework and Recent Developments

Although India lacks a specific regulatory framework dedicated to cryptocurrencies, the finance ministry announced in March 2023 that virtual asset service providers would be subject to the Prevention of Money Laundering Act of 2002.

This legislation mandates that crypto exchanges serving Indian users must register with the FIU-IND and fulfill its reporting and compliance requirements.

Previous Actions and Market Re-entry

The Indian finance ministry confirms that over 50 crypto exchanges have already registered with the anti-money laundering watchdog. The FIU-IND has previously taken enforcement actions against prominent platforms like Binance, Coinbase, KuCoin, and OKX.

OKX exited the Indian market last year. Conversely, Binance, Coinbase, and KuCoin have recently registered with the FIU to resume their operations.

Binance relaunched its Indian operations in August 2024, and Coinbase re-entered the Indian market earlier in the year. Coinbase has also initiated an early-access program for pre-registered Indian users, though full operational capacity is still pending.