India Issues AML Non-Compliance Notices to 15 Offshore Crypto Platforms

India’s Financial Intelligence Unit-India (FIU-IND) has issued non-compliance notices to 15 virtual digital asset service providers over alleged failures to comply with the country’s anti-money laundering requirements. The action was taken under Section 13 of the Prevention of Money Laundering Act, 2002 (PMLA), with separate notices issued seeking the removal of the platforms’ applications and URLs from public access in India.

The platforms named by FIU-IND are Weex, operated by Weex International Exchange LTD; Blofin, operated by BLF Global Limited; Rezorex; Bitunix, operated by Bitunix LLC; DigiFinex, operated by DigiFinex Ltd; Toobit, operated by Hopeful Technology Co. Ltd.; XT.com, operated by Fibtc Ltd and XT TECHNICAL PTE. LTD.; Latoken, operated by LAtrade Ltd; WOO X, operated by Wootech Limited; Pionex, operated by Marketa Trading Inc.; ChangeNow, operated by CHN Group LLC; SimpleSwap, operated by SimpleSwap LTD; Fixedfloat, operated by FFGX Group LLC; WhiteBIT, operated by UAB Clear White Technologies; and Guardarian, operated by FinSeven CZ.

FIU-IND stated that the identified virtual digital asset service providers were operating in India without complying with the relevant provisions of the PMLA. The regulator also sought the takedown of their applications and website URLs under Section 79(3)(b) of the Information Technology Act, 2000, read together with Rule 3(1)(d) of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2025.

India brought virtual digital asset service providers within the scope of its anti-money laundering and counter-terrorist financing framework in March 2023. Under the framework, providers carrying out specified activities for customers are required to register with FIU-IND as reporting entities and comply with obligations established under the PMLA and its associated rules.

The obligations apply to both offshore and onshore providers. FIU-IND states that the regulatory requirements are activity-based rather than dependent on whether a provider maintains a physical presence in India. Providers involved in activities including exchanges between virtual digital assets and fiat currencies, transfers of virtual digital assets, and the safekeeping or administration of virtual digital assets or instruments enabling control over such assets fall within the relevant framework.

The applicable obligations include registration with FIU-IND, reporting requirements and record-keeping requirements under the PMLA. The framework therefore applies to offshore platforms where their activities bring them within the scope of India's regulated virtual asset services, regardless of whether the provider has an office or other physical establishment in the country.

The latest action follows India's broader implementation of AML requirements for the virtual asset sector. Since March 2023, virtual digital asset service providers have been treated as reporting entities for purposes of the PMLA where they conduct activities covered by the legislation. FIU-IND is responsible for receiving, processing, analysing and disseminating information relating to suspicious financial transactions to relevant enforcement authorities.

The notices against the 15 platforms were accompanied by measures directed at their digital access within India. FIU-IND, acting in its capacity as the designated nodal officer under the applicable information-technology legislation, issued notices concerning the removal of the platforms' applications and URLs from public access. The stated basis for the action was that the platforms had been found to be operating illegally without complying with the applicable PMLA provisions.

The platforms affected by the action include exchanges, swap services and other virtual asset businesses operating across multiple jurisdictions. Their inclusion in the enforcement action does not by itself establish that the businesses were involved in money laundering or other criminal activity. The stated basis for the notices is non-compliance with India's AML regulatory requirements.

FIU-IND's action also reflects the distinction in India's framework between the regulatory treatment of virtual digital asset activities and the legal status of cryptoassets as currency. The Ministry of Finance has stated that crypto products and non-fungible tokens remain unregulated as financial products in India and may involve significant risks, while specified virtual asset activities are nevertheless subject to AML requirements under the PMLA.

The September 2026 action therefore concerns the compliance obligations applicable to virtual digital asset service providers conducting specified activities involving Indian users. The notices cover 15 providers and combine formal PMLA non-compliance action with requests to restrict public access to the identified applications and URLs.

By fLEXI tEAM