India FIU Cracks Down on Large Private Crypto Trades with New Reporting Rules

The Financial Intelligence Unit (FIU) of India has issued a directive to major cryptocurrency exchanges requiring them to submit records of over-the-counter (OTC) transactions exceeding $10,000. This move reflects increasing regulatory scrutiny on large private crypto trades.

The FIU wants exchanges to identify the ultimate beneficial owners involved in these transactions, which include private companies, intermediaries, trusts, and other entities participating in large crypto deals. The directive aims to address transparency concerns surrounding large transactions conducted through OTC channels.

Exchanges must now trace and retain relevant records starting from January 2026 onward. This measure is part of India's broader effort to strengthen anti-money laundering oversight across digital asset markets. Regulators have steadily increased compliance expectations for cryptocurrency service providers during recent years.