FIU Registered Crypto Exchange: Secure Trading in India

India has made a landmark move to regulate a rapidly growing cryptocurrency market by announcing that Virtual Digital Asset (VDA) service providers—such as exchanges and intermediaries—must register with its Financial¹ Intelligence Unit–India (FIU‑IND). This step is in line with the cryptocurrency sector aligning with the Prevention of Money Laundering Act (PMLA), which means registration must comply with the AML and KYC requirements.

Importance of FIU Registration

FIU‑IND, a part of the Department of Revenue since 2004, is responsible for receiving, analyzing and investigating suspicious transaction reports and ensuring compliance with PMLA in India. Registration here means that—

• Exchanges implement AML protocols and carry out KYC verification
• It is clear and easy to track user transactions
• Platforms stay under the supervision of the Indian financial authority and keep up the good work.

In the last month of 2023, FIU decided^q to act tough against illegal entities and sent show-cause notices to nine offshore platforms, including Binance, Huobi, Kraken, and Bittrex. It also requested the Ministry of Electronics and IT to restrict the access to those sites that do not comply with the rules.

Legitimate and Registered 28 Indian VDA Providers

Up until December 2023, 28 domestic VDA service providers registered with FIU‑IND. Among those are:

• The registered domestic VDA providers include CoinDCX, WazirX, CoinSwitch, ZebPay, Unocoin, Giottus, Mudrex, BuyUcoin, Bitbns, Rario, and others.

Their registration followed a March 2023 directive from the Finance Ministry, designating VDA entities as “reporting entities” under PMLA.

Offshore Exchanges: Registration, Penalties, and Compliance

Global cryptocurrency exchanges came under legal scrutiny:

• KuCoin has officially registered with FIU in March 2024 and paid a penalty of ₹3.45 million.
• Binance registered in May 2024 and got a fine of ₹188.2 million (~$2.25 million) for AML violations.
• Bybit after receiving a fine of ₹9.27 crore (~$1.06 million) in early 2025, then they got their registration with FIU.
• Coinbase registered in March 2025 and later this year they will launch the retail in India.

Such a step decisively outlines India’s plan: Implement registration, revoke those who violate regulations through fines, and at the same time, facilitatethe integration of offshore platforms in the local market.

Enhanced Oversight in Sensitive Regions

FIU­-IND issued such a statement in May 2025 that domestic exchanges have to opportunely track the crypto transactions with the parts of the region of Jammu and Kashmir and other places on the border because of the danger that the resources may be used for illegal activities. This is fully in sync with the trend of regulation tightening and along with it, concerns grow about the security of the region.

Trusted FIU‑Registered Platforms: What Sets Them Apart

Registered exchanges offer multiple advantages:

• High Compliance Standards: They strictly observe KYC/AML regulations, thus the danger of fraud and money laundering is minimal.
• Investor Security: Users can trade confidently, knowing exchanges are legally accountable.
• Tax & Reporting Ease: Being registered simplifies compliance with India’s 30% crypto gains tax and 1% TDS requirement.  
• Resilient Infrastructure: Many platforms—e.g., CoinDCX and Mudrex—offer cold storage, insurance, and safe INR integration.

According to industry observers, FIU‑registered exchanges are now seen as the “most trusted, legally approved” options in India.

A Changing Scene in Regulation

India’s approach to crypto has changed a lot in the past years:

Effective oversight: Among other changes, the authorities in India are now putting a big emphasis on the registration of FIUs and conducting AML measures.

Enhanced influence globally: Reorientation of the international stance, like the U.S. that is for the regulation of cryptocurrencies, has also had an impact on the Indian crypto policy change.

Neutral outlook: The Supreme Court gave the green light⁸ to the crypto market in 2020, but the Reserve Bank of India is still not convinced enough. The current policy indicates an effort to equally encourage new technologies and new controls.

What Are Traders Supposed to Do?

For traders participating in the Indian crypto market, we offer a simple to-do list, which reads like this:

Choose Securities and Exchange Board of India (SEBI)-compliant exchanges: One should prefer platforms that are registered by the Financial Intelligence Unit – India, whether those be local or abroad.

Ensure compliance: Look for exchange disclosures or check the official FIU site.

Be aware of AML: Avoid KYC time-out or exchanges receiving the information of suspicious transactions, especially if in sensitive areas.

Keep tax records: Traders of registered exchanges have more transparent transaction histories and tax records.

The Future

India’s cryptocurrency ecosystem is growing up:

• India’s native virtual digital assets (VDA) service providers have taken the initial stage. So far 28 Indian VDA service providers have been compliant.
• The capital markets of foreign companies are methodically expanding in the country through regulatory channels as the companies file their^J registration documents and pay fines.
• World policies are important in steering India’s regulatory change; in this respect, further steps will be necessary to bring in more comprehensive regulation after the Prevention of Money Laundering Act.
• FIU-IND is still broadening its oversight of international fund transfers—documenting the movement of the money across the border, ensuring safety, and also

Conclusion

FIU‑IND registration marks a turning point for India’s cryptocurrency industry. A registered exchange offers legal cover, stronger AML safeguards, clear tax pathways, and improved security. Whether you’re a seasoned trader or a newcomer, your safest bets lie with platforms compliant under India’s robust FIU framework.

As regulation continues to evolve into 2025, staying aligned with registered exchanges and proactive compliance will ensure legal trading and safer investment. India’s journey to mature, transparent crypto markets is underway—and FIU registration stands at its core.

Also Read: PENGU Hits Record Volume, Token Jumps 20% – Is $0.05 Next?