India’s Financial Intelligence Unit (FIU-IND) has issued non-compliance notices targeting 15 foreign cryptocurrency trading platforms. The enforcement action under Section 13 of the Prevention of Money Laundering Act (PMLA) targets a long list of entities including Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, Fixedfloat, WhiteBIT, and Guardarian.
FIU-IND did not stop at issuing written notices. The agency also released blocking orders to shut down access to the applications and website URLs of all listed platforms. The blocking action relies on Section 79(3)(b) of the Information Technology Act, enforced in line with the modified 2025 rules.
For Indian authorities, a company’s registration location does not grant legal immunity. Since March 2023, India has brought all virtual asset service providers (VASPs) into its anti-money laundering (AML) and countering the financing of terrorism (CFT) regulatory framework. Offshore firms operating from other countries remain bound by the same obligations when serving Indian users.
Targeting Large-Scale Transactions
Scrutiny of foreign platforms goes hand-in-hand with tracking investor fund flows. Since June, the FIU has pressed at least three major crypto exchanges to submit comprehensive records for over-the-counter transactions exceeding $10,000. The demanded archival data must show transaction histories dating back to January 2026.
The regulator’s maneuvers targeting foreign business players are nothing new. In December 2023, the agency sent formal notice letters to nine large-scale platforms.
Why Users Are Choosing to Move Away
Transacting domestically forces investors to shoulder a series of compounding taxes. Government policy levies a 30% tax specifically on any crypto investment gains. This deduction is compounded by a mandatory 1% tax deduction on specific digital asset transactions.
High tax rates and the loss of access to global platforms are driving shifts in market routines. Recent reports reveal that Indian users are now turning to foreign gift card top-up services based in Sweden, Germany, and Singapore. These alternative facilities allow citizens to spend USDT stablecoins without the friction of liquidating assets through domestic exchanges.
Blocking 15 foreign exchanges cuts off official trading routes from outside the jurisdiction. But the migration of citizens to European services proves that heavy legal pressure continues to leak domestic capital through more covert pathways.
Reported via crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
