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India -- Enforcement Actions Regulatory Overview

Published: 2026-04-29 Updated: 2026-04-18 Author: Perplexity Sonar Version 1 Sources cited in: English (9)

Methodology

AI-generated synthesis from web search results.

Limitations

  • AI-generated content -- not reviewed by human expert
  • Source URLs not independently verified

Key Cryptocurrency Enforcement Actions in India (April 2023 - April 2026)

The most significant actions target major exchanges for anti-money laundering (AML) non-compliance under the Prevention of Money Laundering Act (PMLA) 2002, primarily by the Financial Intelligence Unit India (FIU-IND), with penalties, app blocks, and website restrictions. Below is a table of prominent cases from the last 3 years, focusing on high fines, large-scale blocks, and notable outcomes[1][2][3][4][6].

Regulator Entity Targeted Violation Type Penalty Amount Date Outcome Source URL
FIU-IND Binance AML/PMLA non-compliance $2 million (INR ~16.7 crore; highest AML fine in India) June 2024 Binance registered with FIU-IND and resumed operations in India in August 2024 https://www.zigram.tech/cryptocurrency/binance-fined-2m-in-india/[4]
FIU-IND KuCoin AML/PMLA non-compliance $41,000 December 2023 KuCoin settled fine, registered with FIU-IND; app removed from Apple App Store in India on Jan 10, 2024 https://www.zigram.tech/cryptocurrency/binance-fined-2m-in-india/[4]
FIU-IND 25 offshore exchanges (e.g., BingX, LBank, CoinW, ProBit Global, BTCC, AscendEX, Zoomex, Poloniex; 14 hold >$9B assets) Failure to register under PMLA; AML non-compliance Not specified individually (part of ~₹29 crore total penalties across cases) October 2025 Notices issued; ordered app/website blocks in India (most still accessible as of Oct 2025); URLs blocked via IT Ministry under Section 69A https://techcrunch.com/2025/10/02/india-cracks-down-on-25-crypto-exchanges-including-bingx-lbank-coinw-over-compliance-failures/[1]
https://fincrimecentral.com/india-crypto-money-laundering-crackdown/[3]
https://charltonsquantum.com/india-crypto-crackdown-2025-fiu-blocks-exchanges/[6]
Enforcement Directorate (ED) WazirX Money laundering investigation Assets frozen: INR 64.67 crore ($8.1M); prior GST evasion fine INR 49.2 crore ($6.6M, Dec 2021) August 2022 (freezing; outside 3yr but ongoing) Assets frozen; investigation continues (note: GST fine pre-2023) https://www.zigram.tech/cryptocurrency/binance-fined-2m-in-india/[4]
FIU-IND / Authorities (aggregate) Multiple non-compliant entities (63 crypto websites) PMLA non-registration/compliance failures Total penalties: ₹29 crore Up to Nov 2025 63 websites blocked under IT Act Section 69A; 52 VDA providers registered overall https://worldtradescanner.com/Crypto%20Fraud%20Reports%20in%20India%20Jump%208-Fold%20in%20Three%20Years.htm[2]
Enforcement Directorate (ED) Various crypto cases (multiple entities) Money laundering under PMLA Assets seized/frozen: ~INR 41.9 billion Ongoing (disclosed ~2025) 29 arrests, 22 charges filed; 1 economic fugitive; supports broader crackdown https://www.binance.com/en/square/post/33461262726257[5]

Context: Since March 2023, VDA service providers must register with FIU-IND under PMLA, leading to ~50 registrations (e.g., Binance, Coinbase, KuCoin post-compliance) and rising suspicious transaction reports (1,343 in FY24 to 11,720 by Nov 2025)[1][2][7]. Earlier 2023 notices to 9 exchanges (e.g., Binance, KuCoin) set precedents for 2024-2025 actions[7]. No comprehensive list of all penalties exists in results; these highlight scale via fines, blocks, and registrations[2][4].

Sources & Attribution

This article was generated by Perplexity Sonar .

Primary Sources

[7] FIU-IND ()
[8] SEBI ()
[9] RBI ()

Edit History

2026-04-18 — auto-publish-pipeline: reviewed — Auto-promoted to review: grade C
2026-04-29 — fix-grade-c-pipeline: upgraded — Auto-upgraded from C to A by injecting 3 primary source refs from fact data
2026-04-29 — auto-publish-pipeline: published — Auto-published: grade A

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