India Tightens Cryptocurrency Regulations for 2024-25
The Indian cryptocurrency market is undergoing a significant transformation as the Financial Intelligence Unit of India (FIU-IND) enforces stricter regulations and compliance standards. For the 2024-25 fiscal year, 49 cryptocurrency exchanges, including 45 domestic and 4 offshore platforms, have successfully completed their registration under the Prevention of Money Laundering Act (PMLA).
Compliance Milestones Achieved
This landmark move integrates Virtual Digital Asset (VDA) providers into India’s anti-money laundering and compliance framework. All registered platforms are now required to monitor suspicious transactions, determine wallet ownership, and ensure stricter scrutiny over transfers between hosted and un-hosted wallets.
The FIU has additionally imposed robust monitoring practices by appointing designated directors and officers at each entity to facilitate direct communication with federal bodies. This step reaffirms the intention of creating a transparent and secure crypto market in India.
Enforcement Actions in 2025
India demonstrated its commitment to tightening crypto market regulations by imposing penalties of INR 2.8 billion during the previous fiscal year on non-compliant platforms that failed to meet their reporting obligations. As a result, 25 offshore platforms, including BitMEX and LBank, were blocked in October 2025 for failing registration and compliance requirements. These entities will not regain market access until they meet PMLA standards.
Successful Offshore Market Access
On the other hand, prominent platforms such as Binance, Coinbase, and Mudrex have showcased exemplary compliance by fulfilling all regulatory requirements. Their successful registration paves a clear path for other international exchanges looking to enter the Indian market.
A Stricter Regulatory Framework
India’s crypto regulations are now among the most stringent globally, emphasizing transparency while balancing innovation and safety. Authorities’ ongoing oversight ensures the market remains secure for legitimate wealth creation while addressing risks such as illegal gambling, fraudulent schemes, and hawala transactions.
Discover Transparency in Crypto with Tools You Can Trust
Tight regulations push exchanges and traders towards using secure tools. For individual crypto users, wallets like the Trezor Hardware Wallet are an excellent choice for keeping digital assets secure. Known for industry-leading encryption, Trezor ensures peace of mind for your crypto holdings.
