India’s Financial Intelligence Unit (FIU-IND) has issued formal notices for non-compliance under the Prevention of Money Laundering Act (PMLA), 2002, to 25 offshore Virtual Digital Asset Service Providers (VDA SPs) that have been servicing Indian users without adhering to mandatory AML (Anti-Money Laundering) and CFT (Counter Financing of Terrorism) regulations.
This enforcement highlights India’s commitment to regulating the crypto sector to protect investors and ensure financial security.
Since March 2023, the Indian government has mandated that all VDA SPs, including those operating offshore but targeting Indian customers, register with FIU-IND as reporting entities under the PMLA framework.
The requirement involves strict compliance obligations such as customer due diligence, record-keeping, and suspicious transaction reporting intended to prevent illicit financial activities via digital assets. Despite this, many platforms have remained non-compliant, prompting regulatory action.
The 25 flagged offshore exchanges include prominent names like Huione (Cambodia), Paxful (USA), Changelly (Hong Kong), CEX.IO (USA/UK), LBank (British Virgin Islands), BingX (British Virgin Islands), PrimeXBT (Saint Lucia), BitMex (Seychelles), Poloniex (USA), and emerging platforms such as ZooMex and LocalCoinSwap. These platforms operate from various international jurisdictions but actively solicit Indian users without following the Indian AML laws.
| # | Offshore VDA SP | Jurisdiction / Address |
|---|---|---|
| 1 | Huione | 62, Norodom Blvd, Phnom Penh, Cambodia |
| 2 | BC.Game | Emancipatie Boulevard Dominico F. “Don” Martina 31, Curaçao |
| 3 | Paxful | 3422 Old Capitol Trail, PMP #989, Wilmington, Delaware, USA |
| 4 | Changelly | 18/F East Town, No.41 Lockhart Road, Wan Chai, Hong Kong |
| 5 | CEX.IO | 100 SE 2nd St, Suite 3852, Miami, Florida, USA / 2nd Floor, 1-5 Clerkenwell Road, London, UK |
| 6 | LBank | Meadow House, P.O. Box 116, Road Town, Tortola, British Virgin Islands |
| 7 | Youhodler | Hinds Building, Kingstown, St. Vincent and the Grenadines / Avenue du Théâtre 7, Lausanne, Switzerland |
| 8 | BingX | Johnson’s Ghut, Road Town, British Virgin Islands |
| 9 | PrimeXBT | 1st Floor, Meridian Place Choc Estate, Castries, Saint Lucia |
| 10 | BTCC | Wisteria Grange Barn, Pikes End, Pinner, London, England, UK |
| 11 | CoinEx | Unit 3A, 12/F, Kaiser Centre, No. 18 Centre Street, Sai Ying Pun, Hong Kong |
| 12 | Remitano | 391A Orchard Road, #12-02 Ngee Ann City, Singapore |
| 13 | Poloniex | 99 High Street, Suite 1701, Boston, Massachusetts, USA |
| 14 | BitMex | Global Gateway 8, Rue de la Perle, Providence Mahé, Seychelles |
| 15 | Bitrue | Centro Bianco, 73 Upper Paya Lebar Road, Suite 06-01C, Singapore |
| 16 | LCX | Herrengasse 6, 9490 Vaduz, Liechtenstein |
| 17 | Probit Global | Suite 9, Ansuya Estate, Revolution Avenue, Victoria, Mahé, Seychelles |
| 18 | BTSE | V. Nagevidiaus g. 3, Vilnius, Lithuania / Wickhams Cay II, Road Town, Tortola, British Virgin Islands |
| 19 | HIT BTC | Unit 19, 7/F., One Midtown, No.11 Hoi Shing Road, Tsuen Wan, Hong Kong |
| 20 | LocalCoinSwap | Wan Chai, Hong Kong Island, Hong Kong |
| 21 | AscendEx | 114 Lavender Street, #09-88, Court Hub 2, Singapore |
| 22 | Phemex | 1 Irving Place, #08-11, The Commerze@Irving, Singapore |
| 23 | ZooMex | Vistra Cayman Trust Limited, Grand Pavilion, Hibiscus Way, 802 West Bay Road, Cayman Islands |
| 24 | CoinCola | Rm D, 16/F, One Capital Place, 18 Luard Road, Hong Kong |
| 25 | CoinW | 33 UBI Avenue 3, #08-43 Vertex, Singapore |
In addition to issuing non-compliance notices under Section 13 of the PMLA, the FIU Director has exercised authority under Section 79(3)(b) of the Information Technology Act to direct the takedown of these platforms’ websites and applications in India, effectively blocking public access and signaling strict enforcement on unregistered entities.
As of now, about 50 VDA SPs have registered with FIU-IND and are part of India’s AML/CFT reporting system. Registered entities follow rigorous procedures to maintain transparency and mitigate risks associated with money laundering and financing of terrorism. However, the government continues to caution investors about the risks linked to unregulated crypto products and NFTs, which have no recourse under Indian laws in cases of fraud or loss.
This enforcement not only aims to protect Indian investors but also aligns India’s regulatory environment with global standards, encouraging legitimate crypto service providers to formalize their operations in the country. It reflects India’s broader initiative to secure its financial system from illicit flows and promote a safer, transparent digital asset ecosystem.
