India FIU orders reporting of large OTC crypto trades

India’s FIU has ordered major crypto exchanges to report OTC trades over $10,000 and preserve records from January 2026, targeting AML compliance and beneficial ownership transparency.

India’s Financial Intelligence Unit (FIU) has instructed at least three major cryptocurrency exchanges to submit records of over-the-counter (OTC) crypto transactions exceeding $10,000. These exchanges must trace and preserve such records starting from January 2026. The FIU’s directive aims to identify the beneficial owners behind trades involving private companies, intermediaries, and other entities. OTC deals often bypass public order books, making it harder to track the true source of funds and raising concerns about transparency. This move follows a meeting in late May between the FIU and exchange operators and is part of broader efforts to strengthen anti-money laundering (AML) compliance in India’s crypto sector. Exchanges may need to upgrade their reporting systems to meet these new requirements. The directive was highlighted by WuBlockchain on Twitter, and no significant market impact has been observed since the announcement.