According to ChainCatcher, citing Cryptopolitan, India’s financial intelligence agency 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 retain OTC records dating back to January 2026 and places particular emphasis on beneficial ownership.
The request focuses on transactions in which private companies or intermediaries could be used to conceal the real owners of funds. OTC crypto trades are negotiated directly between a platform and a client rather than executed through a public order book. This structure can help large buyers avoid price fluctuations in the open market, but it also increases the risk created by limited transparency.
Indian regulators view OTC transactions as high-risk channels for money laundering, tax evasion and cross-border fund flows because of the transparency concerns attached to such deals. India remains one of the world’s largest crypto markets, but there is currently no official data on the size of its OTC market.