According to Cryptopolitan, India’s financial intelligence unit has asked three major local crypto exchanges to provide information on over-the-counter crypto transactions valued at more than $10,000. The directive requires exchanges to preserve OTC records dating back to January 2026 and places particular emphasis on beneficial ownership, including the identification of the real owners of funds behind transactions.
Beneficial Ownership Becomes the Main Review Point
The order focuses especially on transactions involving private companies or intermediaries, where the true owner of funds may be hidden. OTC crypto trades are negotiated directly between a platform and its client rather than being executed through the public market, allowing large buyers to avoid price swings on open order books. At the same time, this structure carries a higher risk of limited transparency.
In the regulatory context described in the report, OTC crypto activity is viewed as a high-risk channel for money laundering, tax evasion and cross-border fund movement. India remains one of the world’s largest crypto markets, but there is still no official data on the size of its OTC market. The information request shows a more detailed focus on recordkeeping and ownership identification for high-value off-market crypto trades.