India orders takedown of 15 crypto platforms for anti-money laundering violations

India's Financial Intelligence Unit has issued non-compliance notices to 15 offshore crypto platforms, including Weex, Blofin, and DigiFinex, ordering the takedown of their apps and websites under anti-money laundering laws. The crackdown highlights India's strict stance on Virtual Digital Asset regulations, which require all providers serving Indian users to register regardless of physical presence. The action occurs alongside rising concerns over users bypassing local banks via overseas crypto-to-gift-card conversions.

FIU-IND crypto platform takedowns

• ▪The Financial Intelligence Unit-India requested the blocking of websites and applications for 15 crypto platforms under India's Information Technology Act and intermediary rules.
• ▪The September 9, 2026, announcement by the Financial Intelligence Unit-India does not confirm that the 15 platforms are already blocked or that customer funds or withdrawals are frozen.
• ▪The Financial Intelligence Unit-India issued non-compliance notices to 15 crypto platforms on September 9, 2026, for failing to comply with the Prevention of Money Laundering Act.
• ▪The 15 crypto platforms issued notices by the Financial Intelligence Unit-India are Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, Fixedfloat, WhiteBIT, and Guardarian.

India VDA registration requirements

• ▪India brought virtual-asset service providers within its anti-money laundering and counter-terrorist financing framework in March 2023.
• ▪All Virtual Digital Asset Service Providers operating in India, whether offshore or onshore, are required to register with the Financial Intelligence Unit-India and comply with the Prevention of Money Laundering Act.
• ▪The registration requirement for Virtual Digital Asset Service Providers in India is activity-based and is not contingent on an entity's physical presence in the country.

Crypto gift card conversion

• ▪Indian users are using overseas platforms to convert cryptocurrencies into gift cards and vouchers to purchase groceries, fuel, food, and gold at Indian stores without using local banks.
• ▪Moin Ladha, a partner at Khaitan & Co., stated that the use of crypto to settle transactions outside the banking system raises concerns regarding cross-border payment regulations and anti-money laundering checks.

Offshore platform compliance history

• ▪Bybit temporarily restricted services in India on January 12, 2025, while completing its Financial Intelligence Unit-India registration before restoring full access.
• ▪Binance returned to the Indian market in 2024 after paying a $2.25 million penalty to resolve its regulatory compliance issues.
• ▪The Financial Intelligence Unit-India previously issued non-compliance notices and sought URL blocking for nine offshore crypto providers in December 2023.

Unregulated crypto consumer risks

• ▪The Financial Intelligence Unit-India's September 9, 2026, release provides no common remediation deadline or platform-specific guidance for existing Indian customers of the 15 named platforms.
• ▪The Ministry of Finance warned that crypto products and non-fungible tokens are unregulated in India and carry no regulatory recourse for losses arising from transactions.

Debatable claims

• ▪India should block internet access to non-compliant offshore cryptocurrency platforms
• ▪India should provide regulatory recourse for losses in cryptocurrency transactions