The Financial Intelligence Unit (FIU) of India has mandated reporting for over‑the‑counter crypto transactions that surpass $10,000, a move that targets major cryptocurrency platforms operating in the country.
Regulatory Directive
After a consultation in late May that involved at least three leading Indian exchanges, the FIU issued a formal order requiring the documentation of high‑value OTC deals. The rule applies to trades executed outside the public order books, where institutional investors often move large sums without affecting market price.
Compliance Obligations
Starting January 2026, each platform must retain records that identify directors, controlling parties, and ultimate beneficial owners linked to reportable transactions. Enhanced verification procedures will also extend to digital wallet addresses, source‑of‑funds data, and the full transaction history of each trade.
Market Impact
Investors can expect greater transparency as the new anti‑money‑laundering controls tighten scrutiny of private blockchain dealings. While the requirement may increase compliance costs for crypto exchanges, it aims to protect the broader market by limiting illicit activity and improving traceability of large crypto flows.