How India Revamped Its Crypto Industry in 2025: 49 Exchanges Registered, $3.1M in Fines Issued, Here's What's Next

Core Insights - In 2025, India's crypto market transitioned from a gray-zone industry to a regulated environment with a clear compliance framework [1][2][3] Regulatory Changes - The Financial Intelligence Unit (FIU) took charge of the crypto ecosystem, implementing a registration mandate and imposing fines on non-compliant platforms [2][3] - Crypto service providers were brought under the Prevention of Money Laundering Act (PMLA) of 2002, requiring them to submit suspicious transaction reports and conduct internal audits [4][5] Compliance and Enforcement - A total of 49 crypto exchanges registered with the FIU, including 45 local and four offshore platforms [6][7] - The FIU imposed fines totaling approximately ₹28 crore (about $3.1 million) on non-compliant exchanges, with significant penalties against platforms like Bybit [6][7] Impact on the Industry - The regulatory overhaul aimed to reduce risks associated with money laundering and fraud while allowing legitimate crypto activities to continue [5] - The shift resulted in increased operational costs and tighter controls for exchanges, but also provided them with regulatory legitimacy [5]