India targets 15 offshore crypto platforms for AML violations

India’s FIU issued non-compliance notices to 15 offshore crypto platforms for violating AML rules and ordered their apps and websites blocked.

India’s Financial Intelligence Unit (FIU-IND) has issued non-compliance notices to 15 offshore cryptocurrency platforms, including Weex, Blofin, Bitunix, DigiFinex, Toobit, Rezorex, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, FixedFloat, WhiteBIT, and Guardarian. These platforms are accused of serving Indian users without adhering to the country’s anti-money laundering (AML) regulations. The rules require registration with the FIU, implementation of know-your-customer (KYC) procedures, record-keeping, and reporting of suspicious transactions. In response, the Ministry of Finance has directed internet intermediaries to block access to these platforms’ apps and websites in India. This move follows the March 2023 expansion of India’s AML and counter-financing of terrorism framework, which now applies to all virtual digital asset service providers serving Indian customers, regardless of their location. The FIU also reiterated that crypto products and NFTs remain unregulated and high-risk.