FIU-IND Targets OTC Crypto: $10,000 Trade Records Requested

India's financial intelligence unit is pulling back the curtain on crypto's quietest corner.

The Financial Intelligence Unit of India (FIU-IND) has asked at least three major crypto exchanges to hand over records of over-the-counter transactions above $10,000, roughly 9.44 lakh rupees. The directive covers OTC activity dating back to January 2026 and follows a meeting in late May between the agency and exchange operators, people familiar with the matter said.

OTC desks let large buyers and sellers negotiate directly, often through a broker who handles settlement privately. The trade executes at a fixed price, insulated from exchange order-book volatility. High-value OTC deals frequently end with the crypto withdrawn to private wallets, not custodial exchange accounts. That makes tracing the funds much harder for regulators than exchange-based trades.

The agency's specific focus includes verifying beneficial ownership, particularly when private entities are involved. Shell companies and layered corporate structures can obscure the ultimate beneficial owner, making it possible to move illicit funds through what looks like a legitimate trade. The request mirrors the $10,000 threshold the Financial Action Task Force uses for flagging significant cash transactions.

FIU-IND derives its authority from the Prevention of Money Laundering Act, or PMLA. Crypto exchanges were formally brought under the PMLA in the past couple of years. As of early 2026, 49 crypto exchanges had registered with the agency as reporting entities, including 45 domestic platforms and four offshore exchanges serving Indian users. Registration requires platforms to file suspicious transaction reports when they spot potentially illicit activity.