FIU-IND issues warning to Coinbase India for non-compliance with anti-money laundering laws

New Delhi 

The Financial Intelligence Unit-India (FIU-IND) has formally issued a warning to Coinbase India Private Limited, the Indian arm of global crypto exchange Coinbase Inc., for failing to fulfill its obligations under the Prevention of Money Laundering Act (PMLA), 2002.

Operating as a Virtual Digital Asset Service Provider (VDA SP), Coinbase India falls under the category of Reporting Entities as per Section 2(1)(wa) of the Act. The enforcement action follows Coinbase’s continued operations in India without adhering to key statutory anti-money laundering (AML) requirements, prompting FIU-IND to issue a notice on August 28, 2024.

While Coinbase failed to meet its obligations within the mandated timeline, the company maintained consistent communication with the FIU-IND and eventually ceased its India operations. The FIU considered these mitigating factors—including the entity’s cooperative posture—before opting against monetary penalties.

Instead, invoking Section 13(2)(a) of the PMLA, FIU-IND issued a formal warning in March 2025, emphasising the need for full compliance with AML/CFT norms in any future financial activities linked to India. The order also directs Coinbase to observe rigorous adherence to Chapter IV of the PMLA and the PMLA Maintenance of Records Rules, 2005.

This regulatory move underscores India’s tightening grip on digital asset platforms, reinforcing the need for global crypto entities to align with domestic financial laws.