India's financial intelligence unit just pulled the trigger on 25 offshore crypto exchanges worth over $9 billion, including major platforms like BingX, LBank, and CoinW. The crackdown targets exchanges that refused to comply with anti-money laundering rules, marking the country's most aggressive crypto enforcement action to date.
India's crypto crackdown just got real. The country's Financial Intelligence Unit (FIU-IND) dropped enforcement notices on 25 offshore crypto exchanges Wednesday, targeting platforms that collectively manage over $9 billion in assets and process $20 billion in daily trading volume. The move represents India's most sweeping crypto enforcement action yet, going after household names like BingX, LBank, CoinW, ProBit Global, BTCC, AscendEX, Zoomex, and Poloniex for failing to register under the country's anti-money laundering framework. The regulator didn't just issue warnings - it ordered these platforms to completely withdraw their apps and websites from public access in India. Yet as of press time, most remained stubbornly accessible, setting up a potential cat-and-mouse game between regulators and crypto platforms. The enforcement action stems from India's March 2023 decision to bring virtual asset service providers under the Prevention of Money Laundering Act of 2002. That regulatory shift made registration with FIU-IND mandatory for any crypto exchange wanting to serve Indian users, along with strict reporting and compliance requirements. According to CoinMarketCap data, the 14 largest targeted exchanges among the 25 control assets exceeding $9 billion - a massive chunk of offshore crypto infrastructure that Indian regulators are now pushing out. The platforms targeted in this wave didn't respond to requests for comment, suggesting they may be digging in for a longer regulatory fight rather than seeking compliance. This isn't India's first crypto rodeo. The FIU previously took action against crypto giants including Binance, Coinbase, KuCoin, and OKX, with mixed results. OKX exited the Indian market entirely last year rather than comply, while others chose the compliance route. Binance restarted its India operations in August 2024 after registering with the FIU, and Coinbase re-entered India earlier this year. Coinbase even launched an early-access program for existing Indian users, though its services aren't fully operational yet. The enforcement pattern reveals India's pragmatic approach: comply or leave, but the door remains open for those willing to play by local rules. At least 50 crypto exchanges have registered with India's anti-money laundering watchdog so far, according to the finance ministry, suggesting the carrot-and-stick approach is working. The timing is significant. India lacks a dedicated regulatory framework for cryptocurrencies, creating a patchwork enforcement environment where AML rules serve as the primary regulatory tool. This latest action shows regulators are willing to use whatever legal authority they have to bring offshore platforms into compliance. For the global crypto industry, India's moves matter beyond its borders. As one of the world's largest potential crypto markets, India's regulatory decisions influence how platforms approach compliance globally. The $9 billion in assets now under regulatory pressure represents just a fraction of the crypto wealth flowing through offshore exchanges, but it signals a broader trend toward stricter oversight.