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FIU-IND Issues Compliance Notices to 25 Offshore Crypto Exchanges

India’s Financial Intelligence Unit (FIU-IND) recently sent show-cause notices to 25 offshore cryptocurrency exchanges for failing to comply with the country’s anti-money laundering laws and registration requirements.
3 October 2025 by
Cryptosmit
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This marks another step in the Indian government’s push to bring offshore exchanges under its legal framework and strengthen investor protection.

Why the Crackdown?

According to reports:

  • Offshore platforms were flagged for non-registration with FIU-IND as reporting entities.

  • These exchanges must implement KYC, track transactions, submit audits, and report suspicious activity under PMLA rules.

  • Non-compliance could lead to penalties, fines, or even blocking of access to their websites/apps in India.

Which Exchanges Are Affected?

The FIU’s notice includes some well-known international platforms:

  • Huione
  • BC.game
  • Paxful
  • Changelly
  • CEX.IO
  • LBank
  • Youhodler
  • Phemex
  • AscendEx
  • ZooMex
  • CoinCola
  • Coin
  • LCX
  • Probit Global
  • BTSE
  • HIT BTC
  • LocalCoinSwap
  • Bitrue
  • BingX
  • PrimeXBT
  • BTCC
  • CoinEx
  • Remitano
  • Poloniex
  • BitMex

What It Means for Indian Users

For Indian crypto traders and investors:

Service Disruptions Possible – If these exchanges don’t comply, they may face website/app bans or restrictions.

Tighter KYC Rules Ahead – Users will likely need stricter verification to continue using compliant platforms.

Safer Market in the Long Run – The move is aimed at reducing fraud, money laundering, and ensuring investor security.

The FIU-IND’s action highlights India’s stronger regulatory stance on crypto in 2025. Offshore exchanges must now play by the rules or risk losing access to millions of Indian users.

If you’re trading in India, it’s smart to:

  • Stick to platforms registered with FIU-IND

  • Watch for compliance updates

  • Always secure your funds in trusted crypto wallets

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