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India's FIU seeks records of OTC crypto transactions above $10,000 from major exchanges.
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FIU says exchanges must reportedly preserve and trace OTC trade records dating from January.
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Crypto remains legal in India, but anonymous transactions face increasing regulatory scrutiny.
In India, crypto is no longer anonymous. The country’s Financial Intelligence Unit of India (FIU-IND) has reportedly asked major crypto exchanges to share details of over-the-counter (OTC) crypto transactions worth more than $10,000 (roughly ₹9.4 lakh).
The move signals that regulators want to keep an eye on everyday crypto transfers.
FIU Wants More Visibility Into Large Crypto Deals
According to reports, the anti-money laundering unit has instructed three major exchanges to provide information on OTC crypto transactions exceeding $10,000. Regulators are particularly interested in identifying the “ultimate beneficial owners” behind companies, intermediaries, and other entities involved in these transactions.
Exchanges have also reportedly been asked to maintain and trace these records from January 2026 onward.
Unlike regular exchange trading, OTC transactions take place outside public order books. Investors often use OTC desks when buying or selling large amounts of crypto because it helps avoid sharp price movements and market slippage.
Why Regulators Are Focusing on OTC Markets
For regulators, OTC trades can create blind spots. Large transactions may involve corporate entities, cross-border fund movements, or intermediaries that make it harder to identify who ultimately controls the assets.
By collecting beneficial ownership data, FIU-IND aims to improve oversight of large crypto flows and strengthen anti-money laundering enforcement.
This is also important because many shell companies and layered ownership structures can hide the person who actually controls the funds.
Crypto Is Becoming Less Anonymous
Just days before, Coinpedia news reported that Binance introduced stricter transfer reporting requirements for Indian users.
Starting June 22, Binance users in India must provide detailed sender and beneficiary information for crypto deposits and withdrawals, including names, addresses, residence details, and identification information.
Indian Crypto Users Continue to Face 31% Tax
This latest rule does not change India’s existing crypto tax rules. The 30% tax on gains, 1% TDS on eligible transfers, and crypto disclosure requirements in income tax filings remain unchanged.
A few years ago, regulators were debating whether crypto should be allowed. Today, they want to know who owns it, where it moves, and who ultimately receives it.
Now, the focus is on transparency, but anonymity on regulated platforms is steadily disappearing.
