India’s Financial Intelligence Unit reviewed Suspicious Transaction Reports and registered 49 crypto exchanges in FY 2024–25, finding repeated misuse of crypto for scams, fraud, gambling, darknet services, terror financing and CSAM. The FIU is now the single authority monitoring Virtual Digital Asset (VDA) Service Providers under the PMLA. Exchanges must submit STRs, identify wallet owners, track fundraising and transfers, disclose banking relationships, appoint compliance officers, conduct audits, screen for sanctions and share data with the FIU. Non-compliant platforms were fined ₹28 crore in FY 2024–25 and oversight has been reinforced with tax and withholding rules.

FIU designated as sole authority and classed exchanges as VDA Service Providers under PMLA; mandated STR submissions, wallet identification, audits, sanctions screening and data-sharing; fined non-compliant platforms ₹28 crore and added tax/withholding rules — concrete enforcement actions likely to reduce operational flexibility and trading flow.