India’s Financial Intelligence Unit-India (FIU-IND) has issued notices to 15 cryptocurrency platforms over alleged violations of anti-money laundering requirements and sought restrictions on their websites and applications. The action comes under the Prevention of Money Laundering Act and relevant provisions of the Information Technology Act. FIU-IND has reiterated that virtual digital asset service providers serving Indian users may face reporting and registration obligations regardless of where they are physically based. The move highlights India’s expanding regulatory scrutiny of crypto platforms and VDA-related transactions.

15 Crypto Platforms Face India Takedown Order Over Anti-Money Laundering Rules 

The Financial Intelligence Unit-India has issued notices to 15 cryptocurrency platforms for alleged violations of anti-money laundering regulations and sought to block their websites and applications.

India’s Financial Intelligence Unit-India (FIU-IND) has sent notices to 15 crypto platforms for alleged violations of anti-money laundering rules and requested action to restrict public access.

The Union Ministry of Finance said the notices were issued under Section 13 of the Prevention of Money Laundering Act, 2002, which applies to entities operating in India.

FIU-IND also prayed for the blocking of the said websites and applications under Section 79(3)(b) of the Information Technology Act, 2000, and applicable intermediary rules made thereunder.

The move re-focuses on compliance obligations for virtual digital asset service providers, including offshore businesses providing services to Indian users without establishing physical operations within India.

In accordance with the regulatory framework of India, VDA SPs involved in specified activities are mandated to register with FIU-IND as reporting entities and adhere to the obligations specified under the PMLA.

These activities include exchanges of virtual digital resources to fiat currencies, exchanges of virtual digital resources, transfers of assets, and services of safekeeping or administration for customers and users.

The framework also involves participation in and provision of financial services in connection with the offer and sale of virtual digital assets by an issuer in India on a national level.

The FIU-IND has stated that registration obligations are activity-based and that the physical location of an entity does not dictate whether Indian anti-money laundering obligations apply directly.

Why VDA Service Providers Face Compliance Requirements

Thus, offshore and onshore VDA SPs engaged in notified activities concerning Indian users are brought under the purview of the reporting framework, irrespective of the formal registration place of such businesses.

The government’s action is in accordance with the established compliance approach under the PMLA, wherein action can be taken by FIU-IND under the law for non-registration or non-compliance with reporting requirements.

In January 2026, FIU-IND issued a guidance document reiterating that the obligations under VDA SPs apply irrespective of physical presence in India and that unregistered providers may be subject to compliance action.

That guidance also outlined a risk-based approach to transactions involving unhosted wallets, anonymity-enhancing crypto tokens, tumblers, mixers and other services that pose heightened money laundering risks to financial institutions.

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Thus, the latest notices are part of a broader Indian push to bring virtual digital asset activity under the umbrella of financial crime prevention and transaction-monitoring requirements across markets.

The Ministry of Finance said that crypto products and non-fungible tokens, or NFTs, are not regulated and potentially pose serious consumer risks to users.

Users may have little or no regulatory recourse for losses from transactions involving such products, the ministry said, stressing the need for caution.

The government’s warning is distinct from the enforcement action, but it provides important context for investors and users who are accessing cryptocurrency exchanges and other platforms for digital currencies.

What the Crypto Takedown Means for Users

For the impacted platforms, the notices could entail regulatory engagement, registration, compliance remediation, or other steps before their services can continue to operate publicly for users in India.

“This development underscores the importance for users to verify whether a VDA service provider is registered with FIU-IND before undertaking any transactions or transferring electronic assets in India.

Indian authorities are stepping up regulation of crypto-related activities, especially anti-money laundering controls and consumer protection, and Sprouts News will continue to monitor regulatory developments.

The next immediate steps will depend on the responses of the notified platforms and the actions taken by the relevant authorities on the access to websites and applications for public users.