India Cracks Down on 25 Crypto Exchanges Including BingX, LBank, CoinW Over Compliance Failures

Offshore cryptocurrency platforms holding billions of dollars in digital assets are now under scrutiny from Indian authorities, as the government intensifies its crackdown on non-compliant operators. India’s Financial Intelligence Unit (FIU-IND) has moved against 25 crypto exchanges for failing to register and meet anti-money laundering (AML) obligations.

The FIU-IND has issued official notices to platforms such as BingX, LBank, CoinW, ProBit Global, BTCC, AscendEX, Zoomex, and Poloniex, citing violations of the country’s AML regulations, according to the finance ministry’s statement on Wednesday. Additionally, the watchdog instructed these exchanges to withdraw their websites and apps from public access across India. However, as of the time of this press, most platforms remained accessible.

Together, 14 of the affected exchanges manage assets exceeding $9 billion and have collectively processed nearly $20 billion in trading volume within the past 24 hours, according to CoinMarketCap data. Several exchanges, including BingX, LBank, CoinW, and ProBit Global, have not responded to requests for comment so far.

India currently lacks a dedicated regulatory framework for cryptocurrencies. Still, in March 2023, the finance ministry clarified that virtual asset service providers (VASPs) fall under the Prevention of Money Laundering Act (PMLA) 2002. This decision made it mandatory for crypto exchanges operating in India to register with the FIU-IND and comply with its reporting and compliance standards.

So far, at least 50 crypto exchanges have registered with the FIU. The agency has previously taken action against major global players like Binance, Coinbase, KuCoin, and OKX. While OKX exited India in 2024, Binance, Coinbase, and KuCoin have recently registered with the FIU to restart operations in the market.

Binance officially resumed its India services in August 2024, while Coinbase re-entered earlier this year. Coinbase has also launched an early-access program for Indian users who are already registered on its platform, although its services are not yet fully rolled out.