Indian Compliance & Tax

What are a crypto exchange's reporting obligations to FIU-IND?

A crypto exchange operating in India must register with the Financial Intelligence Unit-India (FIU-IND) as a reporting entity and follow obligations under the Prevention of Money Laundering Act. These include verifying customer identity through KYC, keeping transaction records, appointing a principal officer, and filing reports such as Suspicious Transaction Reports and Cash Transaction Reports. For example, an unusual high-value transfer with no clear economic purpose would trigger a Suspicious Transaction Report. These rules govern the platform, not the individual user, and apply to both domestic and offshore exchanges serving Indian customers.

This is general information, not tax advice. Tax rules change and depend on your individual circumstances — verify the current rules or consult a qualified tax professional before acting.