India's Financial Intelligence Unit (FIU) has issued notices to 15 virtual digital asset service providers for non-compliance with the country's anti-money laundering law, according to an official press release from the Finance Ministry. The notices were issued by the Director of FIU-India as part of compliance action against entities operating without meeting the required obligations under the Prevention of Money Laundering Act (PMLA). As per the Finance Ministry, these notices have been issued under Section 13 of the PMLA, 2002, as part of the regulatory framework to ensure compliance with India's anti-money laundering provisions. The action was taken under powers linked to Section 79(3)(b) of the Information Technology Act, 2000, read with Rule 3(1)(d) of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2025. Separate directions have also been issued under the Information Technology Act, 2000, to initiate the takedown of the applications and URLs associated with these platforms in India.
The platforms named by the ministry include Weex International Exchange LTD (Trade name Weex), BLF Global Limited (Blofin), RezorEx (Rezorex), Bitunix LLC (Bitunix), DigiFinex Ltd (DigiFinex), Hopefull Technology Co. Ltd. (Toobit), Fibtc Ltd/ XT TECHNICAL PTE. LTD. (XT.Com), LAtrade Ltd (Latoken), Wootech Limited (WOO X), Marketa Trading Inc (Pionex), CHN Group LLC (ChangeNow), SimpleSwap Ltd (SimpleSwap), FFGX Group LLC (Fixedfloat), UAB Clear White Technologies (WhiteBIT) and FinSeven CZ (Guardarian). As reported by the Finance Ministry, the FIU director has also issued notices in his capacity as the nodal officer under India's information technology law, seeking the takedown of applications and URLs associated with the 15 entities from public access. These platforms were found to be operating illegally without complying with relevant provisions of the PMLA in India. This latest action follows a pattern of enforcement, as in October 2025, FIU-IND issued notices to 25 offshore VDA service providers, including Huione, Paxful, Changelly, BitMex, BingX, CoinEx, and LBank, with similar directions to block their apps and URLs in India.
Virtual Digital Asset Service Providers were brought under India's anti-money laundering and counter-financing of terrorism framework in March 2023. According to the Finance Ministry, VDA service providers operating in India, whether offshore or domestic, are required to register with FIU-India as reporting entities if they undertake activities such as exchanging virtual digital assets for fiat currencies, transferring digital assets or providing custody or administration services. These obligations are activity-based and apply irrespective of whether the entity has a physical presence in India. Registered VDA SPs are required to comply with reporting, record-keeping and other obligations prescribed under the PMLA and rules framed under it. Physical presence in India does not determine whether the rules apply - an offshore company serving Indian customers can fall within the framework even if it has no office or legal entity in the country. The requirements are based on the services offered and do not depend on whether the platform has a physical presence in India.
Legal experts have provided insights into the regulatory implications of this action. Aniket Ghosh, Partner at King Stubb & Kasiva, explained that "FIU-IND has always looked at the activity rather than the place of incorporation, so an offshore exchange serving Indian users comes within the reporting framework wherever it is based. Alongside the Section 13 notice, FIU-IND has directed that the apps and URLs be taken down under Section 79(3)(b) of the IT Act, and that is what directly affects user access." WazirX emphasized that "FIU-IND's compliance standards are critical to protecting users and preventing the misuse of VDA platforms for illegal fund transfers. Measures such as KYC, AML checks, geotagging and liveness verification have made India's VDA ecosystem safer over the years." Vikram Subburaj, CEO of Giottus, suggested that "For investors, the message is equally clear. The features offered by a platform should not be the only consideration when choosing where to trade. Investors must verify whether the platform is registered with FIU-IND and complies with Indian law."
The Ministry of Finance has issued a strong public warning about the unregulated nature of cryptocurrency investments in India. As per the Finance Ministry, the government cautions that crypto products and NFTs remain unregulated in India and can carry significant risks. The ministry stated that "There may be no regulatory recourse for any loss from such transactions." This warning comes as part of the broader regulatory framework, with VDA service providers required to register with FIU-India and comply with PMLA obligations. The ministry has reiterated these risks, stating that "Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions." This latest action highlights the government's focus on ensuring that crypto service providers operating in India follow mandatory reporting and compliance standards while protecting public interests.
