Blab Crypto
FIU-IND Issues Compliance Notices to 15 Crypto Platforms, Orders Takedown of Apps and URLs
On 9 September 2026, the Financial Intelligence Unit‑India (FIU‑IND) sent compliance notices to 15 virtual digital asset (VDA) service providers, accusing them of violating India’s anti‑money‑laundering framework. The notices also ordered the removal of the platforms’ applications and web addresses from public access, exercising the unit’s powers under the Information Technology Act and related intermediary rules.
The 15 platforms named in the notices are Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, FixedFloat, WhiteBIT and Guardarian. The action targets both offshore and onshore exchanges that offer services to Indian users without registering with FIU‑IND as reporting entities under the Prevention of Money Laundering Act (PMLA), 2002. Under the PMLA, any VDA service provider operating in India must register with FIU‑IND and comply with reporting, record‑keeping and other anti‑money‑laundering and counter‑terrorism financing obligations, regardless of whether the platform has a physical presence in the country.
The notices were issued under Section 13 of the PMLA, which allows the FIU to demand that non‑compliant entities rectify their status or face enforcement action. In addition, the unit exercised its authority under Section 79(3)(b) of the Information Technology Act to order the takedown of the platforms’ apps and URLs, effectively blocking Indian users from accessing the services.
This enforcement action follows a similar crackdown in 2025, when FIU‑IND issued notices to 25 offshore cryptocurrency exchanges—including Huione, Paxful, Changelly and BitMex—for serving Indian customers without registering under the PMLA. Those exchanges operated from various jurisdictions but actively solicited Indian users, thereby violating India’s financial‑crime regulations.
The current notices underscore the government’s increasing scrutiny of offshore crypto platforms that cater to Indian users without meeting domestic compliance requirements. By targeting both onshore and offshore entities, FIU‑IND signals that the regulatory regime applies to all VDA service providers that facilitate transactions for Indian residents. The action also highlights the role of the FIU as the nodal authority for enforcing AML/CFT rules in the digital‑asset sector. Established in November 2004 under the Department of Revenue, the unit reports directly to the Economic Intelligence Council headed by the Finance Minister and is tasked with collecting and analysing suspicious‑transaction reports and disseminating intelligence to law‑enforcement agencies.
The 15 platforms named in the notices have not yet responded publicly to the FIU’s directives. The notices do not specify penalties or timelines for compliance, but the removal orders are immediate and enforceable under the IT Act. Failure to register or to comply with the PMLA’s reporting obligations could lead to further sanctions, including fines or criminal prosecution.
In the broader context, the crackdown reflects India’s broader strategy to tighten oversight of the rapidly growing cryptocurrency market. While the country has not yet introduced a comprehensive regulatory framework for digital assets, the PMLA and the IT Act provide the legal basis for controlling the flow of funds through crypto platforms.
The FIU‑IND’s latest enforcement action is part of a series of measures aimed at curbing illicit activity and protecting consumers in the digital‑asset space. The unit’s continued vigilance is expected to influence the operational decisions of VDA service providers that wish to serve Indian users. As of now, the 15 platforms remain subject to the FIU’s directives. The Indian government has not announced any further regulatory changes, but the ongoing enforcement suggests that additional compliance requirements or stricter penalties could be introduced in the near future.
The 15 platforms named in the notices are Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, FixedFloat, WhiteBIT and Guardarian. The action targets both offshore and onshore exchanges that offer services to Indian users without registering with FIU‑IND as reporting entities under the Prevention of Money Laundering Act (PMLA), 2002. Under the PMLA, any VDA service provider operating in India must register with FIU‑IND and comply with reporting, record‑keeping and other anti‑money‑laundering and counter‑terrorism financing obligations, regardless of whether the platform has a physical presence in the country.
The notices were issued under Section 13 of the PMLA, which allows the FIU to demand that non‑compliant entities rectify their status or face enforcement action. In addition, the unit exercised its authority under Section 79(3)(b) of the Information Technology Act to order the takedown of the platforms’ apps and URLs, effectively blocking Indian users from accessing the services.
This enforcement action follows a similar crackdown in 2025, when FIU‑IND issued notices to 25 offshore cryptocurrency exchanges—including Huione, Paxful, Changelly and BitMex—for serving Indian customers without registering under the PMLA. Those exchanges operated from various jurisdictions but actively solicited Indian users, thereby violating India’s financial‑crime regulations.
The current notices underscore the government’s increasing scrutiny of offshore crypto platforms that cater to Indian users without meeting domestic compliance requirements. By targeting both onshore and offshore entities, FIU‑IND signals that the regulatory regime applies to all VDA service providers that facilitate transactions for Indian residents. The action also highlights the role of the FIU as the nodal authority for enforcing AML/CFT rules in the digital‑asset sector. Established in November 2004 under the Department of Revenue, the unit reports directly to the Economic Intelligence Council headed by the Finance Minister and is tasked with collecting and analysing suspicious‑transaction reports and disseminating intelligence to law‑enforcement agencies.
The 15 platforms named in the notices have not yet responded publicly to the FIU’s directives. The notices do not specify penalties or timelines for compliance, but the removal orders are immediate and enforceable under the IT Act. Failure to register or to comply with the PMLA’s reporting obligations could lead to further sanctions, including fines or criminal prosecution.
In the broader context, the crackdown reflects India’s broader strategy to tighten oversight of the rapidly growing cryptocurrency market. While the country has not yet introduced a comprehensive regulatory framework for digital assets, the PMLA and the IT Act provide the legal basis for controlling the flow of funds through crypto platforms.
The FIU‑IND’s latest enforcement action is part of a series of measures aimed at curbing illicit activity and protecting consumers in the digital‑asset space. The unit’s continued vigilance is expected to influence the operational decisions of VDA service providers that wish to serve Indian users. As of now, the 15 platforms remain subject to the FIU’s directives. The Indian government has not announced any further regulatory changes, but the ongoing enforcement suggests that additional compliance requirements or stricter penalties could be introduced in the near future.
