India’s Financial Intelligence Unit (FIU-IND) has directed at least three major cryptocurrency exchanges to provide detailed records of over-the-counter (OTC) transactions exceeding $10,000. This request covers trades dating back to January 2026 and focuses on beneficial ownership details, aiming to strengthen anti-money laundering compliance and close visibility gaps in large private crypto deals. The directive follows a meeting with exchange operators at the end of May and signals a more assertive regulatory approach toward high-value off-exchange activity.
Over-the-counter trades are popular among institutional players and high-net-worth individuals because they allow large volumes to be executed with minimal market impact. However, they have historically operated with less transparency compared to on-exchange activity. By requesting these records, the FIU seeks to identify ultimate beneficial owners, track fund flows, and address potential risks related to money laundering or opaque structures involving private companies and intermediaries. Exchanges have already been required to preserve OTC records since the start of the year, and this move gives authorities easier access to that information when needed.
This development reflects India’s broader efforts to bring the crypto sector under tighter oversight while maintaining a compliant framework. Registered exchanges continue to operate under the Prevention of Money Laundering Act, with obligations around customer due diligence, suspicious transaction reporting, and record-keeping. For everyday retail traders using compliant platforms and fulfilling tax requirements, day-to-day activities are unlikely to face immediate disruption. The focus remains squarely on larger, less transparent OTC flows that could otherwise bypass standard monitoring.
Regulatory scrutiny of this nature often shapes market behavior, encouraging greater professionalism, better compliance infrastructure, and long-term legitimacy for the crypto industry in India. As authorities increase visibility into high-value transactions, it may also influence how large players structure their trades going forward and could set a precedent for similar measures in other jurisdictions.
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