India's Financial Intelligence Unit (FIU-IND) annual report for FY 2024-25 shows 49 cryptocurrency exchanges have registered under anti-money laundering (AML) rules. Among them, 45 are domestic platforms (CoinDCX, WazirX, CoinSwitch, ZebPay, Mudrex, etc.) and four are offshore — Binance and KuCoin registered in 2024 after paying fines, while Coinbase and Bybit registered in early 2025.
Total Penalties Reach ₹28 Crore; Binance and Bybit Top the List
FIU-IND imposed penalties under the Prevention of Money Laundering Act (PMLA, 2002). Total fines for the fiscal year amounted to ₹28 crore ($3.37 million). Binance was penalized ₹18.82 crore ($2.27 million) in June 2024 for operating without registration; it later paid, registered, and resumed services. Bybit Fintech Limited received a ₹9.27 crore fine in January 2025 for similar violations. Smaller penalties on KuCoin and others made up the balance.
Compliance-First Approach: High Tax + AML, Not a Ban
India chose a regulatory path focused on compliance rather than outright prohibition. Key measures: a 30% tax on crypto gains plus a 1% TDS; strict AML oversight via FIU-IND; and a requirement that only registered entities operate. Since 2023, all exchanges operating in India must report suspicious transactions, enforce KYC/AML, maintain records, and cooperate with law enforcement. Non-compliance can lead to fines, show-cause notices, website blocks, and service bans. Investigations linked some unregistered platforms to hawala networks and terror financing, reinforcing the need for tighter enforcement.
Why Global Platforms Stay Despite Heavy Fines
Why do major exchanges accept penalties and remain in India? The answer lies in market potential. India has a young, crypto-savvy population and ranks high in global crypto adoption. For these platforms, profits from the Indian market far outweigh regulatory costs and fines. Meanwhile, the country is gradually enhancing its digital asset infrastructure, signaling long-term commitment.
Global Context: Over 100 Jurisdictions Now Regulate Crypto
India's approach mirrors a worldwide trend. The EU's MiCA regulation is fully in force; the US introduced the GENIUS Act stablecoin bill in 2025; and Singapore, UAE, and Hong Kong are licensing exchanges. More than 100 jurisdictions now have some form of crypto regulation, marking a shift from unchecked growth to structured oversight.