India's FIU Requests Crypto OTC Records Above $10,000 From Major Exchanges
India's Financial Intelligence Unit has requested crypto over-the-counter trade records above $10,000 from three major exchanges, with data collection beginning January 2026. The move signals heightened regulatory scrutiny of beneficial ownership in large OTC transactions.
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FIU's Information Request
India's Financial Intelligence Unit has asked three major cryptocurrency exchanges to provide over-the-counter trade records for transactions exceeding $10,000, with data collection mandated from January 2026 onward. The FIU, which operates under India's Ministry of Finance and enforces anti-money-laundering and counter-terrorism financing rules, is seeking beneficial ownership details tied to each transaction.
Regulatory Intent
The request reflects the FIU's focus on high-value OTC trades, which operate outside regulated order-book exchanges and are harder to track than spot or derivatives trading. By setting the threshold at $10,000 and requiring beneficial ownership information, the regulator is targeting transactions that cross India's domestic reporting requirements for currency and financial transactions. The January 2026 start date suggests the FIU is preparing for systematic monitoring of OTC activity going forward rather than retroactively auditing past trades.
Broader Context
India has alternated between restrictive and permissive stances on cryptocurrency over the past five years. Last year the country introduced a 1% tax on crypto transfer gains and a 30% income tax on profits, establishing a framework for taxed trading. This records request represents a continuation of India's shift toward integration of crypto activity into its financial compliance infrastructure rather than outright prohibition.
Why It Matters
For Traders
Exchanges operating in India will likely implement stricter KYC protocols for OTC desk customers, potentially slowing settlement of large informal trades.
For Investors
India's shift toward systematic regulatory oversight of crypto transactions reduces legal gray-zone risk for Indian institutional capital entering the market.
For Builders
Infrastructure providers serving Indian exchanges should expect compliance requirements around beneficial ownership verification and reporting workflows to harden.
This article is for information only and is not financial advice. Read the full disclaimer.
