India hits Bingx, Lbank with major crackdowns targeting offshore exchanges

India has launched its toughest crackdown on crypto to date, blacklisting 25 offshore platforms with over $9 billion, including Bingx and Lbank, which have not met antimony laundering standards.

According to a release on October 2, the country’s Treasury Ministry said the Financial Information Unit India has already directed an exchange to disable access to apps and websites within the country.

This came after India has leaned towards not writing legislation regulating domestic cryptocurrencies and instead chose partial surveillance, fearing that bringing digital assets into the mainstream financial system could pose a systematic risk, as government documents reveal.

The report considers the Reserve Bank of India (RBI) to actually view it as lean to regulate cryptocurrency risks.

India exchanged based on the 2002 Anti-Money Laundry Method

There is an Indian fiu-ind issued According to CoinmarketCap, 25 exchanges were notified of execution notices to 25 exchanges, of which 14 collectively referred to as $22 billion in just 24 hours. Enforcement action on Thursday dates back to the March 2023 decision. The decision required the state to submit cryptographic service providers under the Anti-Money Laundry Act of 2002, register with the FIU and submit reports on their activities.

Still, India has come to the creation of a comprehensive cryptographic law and has stopped choosing fragmentary surveillance instead. The Reserve Bank of India (RBI) argued that effectively regulate the sector will be extremely difficult, just like last month. To close the gap, the country has turned into heavy taxation and compliance, imposing a 30% tax on profits and a 1% TD (withholding tax) on transactions, leading to a decrease in domestic trading volume.

The government still allows overseas exchanges to operate if complied, as highlighted by reopening Buybit after a fine of 9.27 crore, worth around $1.06 million, under the Money Laundering Act (PMLA). To date, over 50 crypto exchanges have been registered with FIU-ind.

Chain activity has increased by nearly 70% year-on-year

Binance, Coinbase, Kucoin and OKX were all hit by enforcement measures in 2023 and 2024. OKX chose to leave India, while other exchanges comply with FIU rules and resumed business. Many platforms have removed sites and apps until they comply with penalties and registration requirements. It remains regulated, but Binance and Kucoin later rebooted.

Despite the restrictions, Indians are estimated to own around $4.5 billion in digital assets, but the regulations limit systemic exposure. The country remains the largest market by trading volume supported by grassroots adoption, remittances and fintech integration.

Japan, although its absolute volume is smaller, showed the fastest growth rate of 120% year-on-year by June 2025, driven by regulatory reforms, wider investor participation, and increased use of key digital assets. This growth highlights the diverse adoption models that shape the landscape of APAC cryptography.

Offshore exchange continues to view India as a major market. Chain Melting ranked number one in global adoption for the third year in a row, with India leading retail, institutional, debt and diversified services. Between June 2024 and June 2025, activity in Chain increased by 69% year-on-year.

Across India and the APAC region, Crypto trading volume has skyrocketed from $1.4 trillion to $2.36 trillion, interacting with the market despite strict requirements. Separately, India aims to adopt OECD CARF by April 2027, enabling cross-border reporting of crypto flows.

Officials from the top finance ministry said India is expected to sign the Multilateral Capacity Authority Agreement (MCAA) next year, thereby establishing a legal framework for the automatic exchange of tax information. The country has already joined the MCAA for its financial accounts in 2015, with the new version expanding to digital assets.

The new system will track investors’ digital assets on foreign platforms and require that transactions be reported on overseas CEXS. Tax experts warn that once implemented, the administration will apply retroactively, allowing officials to issue notifications of previously undeclared benefits.