India Flags 15 Offshore Crypto Platforms for Anti-Money Laundering Violations

India’s Financial Intelligence Unit issued formal non compliance notices to 15 offshore cryptocurrency platforms, accusing them of serving Indian customers without registering under the country’s anti-money laundering framework. The named platforms include Weex, Blofin, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, Fixedfloat, WhiteBIT and Guardarian.

Registration Rules Apply Regardless of Physical Presence

India brought crypto platforms under the same anti-money laundering rules as banks back in 2023, requiring any exchange serving Indian customers to register with the financial intelligence unit, verify users and report suspicious activity, even without a physical office in the country. Authorities also warned the public that crypto products and NFTs remain largely unregulated and carry significant risk with limited recourse for losses.

Action Follows Reports of Workarounds Using Gift Cards

The enforcement action comes shortly after reports indicated Indian users have been routing stablecoins through platforms in Europe that convert crypto into gift cards, which are then used domestically for everyday purchases, a method that keeps transactions outside the view of Indian regulators. This marks a continuation of enforcement efforts that began in 2023, when the agency issued show-cause notices to larger exchanges including Binance and Kraken, with Binance eventually registering and paying a significant penalty for past violations.