Can Indian Businesses Legally Accept Cryptocurrency? 2025 Guide
Learn if Indian businesses can legally accept cryptocurrency, tax duties, AML rules, and upcoming COINS Act changes in this 2025 guide.
When working with FIU-IND crypto compliance, the set of rules and reporting duties that Indian crypto businesses must follow under the Financial Intelligence Unit’s guidance. Also known as India’s FIU crypto framework, it intertwines with Anti‑Money‑Laundering (AML) regulations, mandatory controls to detect and prevent illicit fund flows and the Travel Rule, the requirement to share transaction participant data across borders. Understanding these pieces helps you see why compliance is not optional.
The first pillar is FIU-IND crypto compliance. It requires every crypto service provider to register with the Indian Financial Intelligence Unit, file regular suspicious activity reports, and keep detailed KYC records. This pillar encompasses AML reporting, transaction monitoring, and audit readiness. In practice, a crypto exchange like Cryptex that ignored these duties faced shutdown, a clear warning for anyone skirting the rules.
Next, AML regulations act as the enforcement engine. They dictate the risk‑based approach: higher‑risk assets demand deeper verification, while low‑risk transactions can use streamlined checks. The rule AML regulations require crypto firms to maintain real‑time monitoring tools and a compliance officer on staff. When an exchange implements robust AML software, it not only satisfies the FIU but also reduces the chance of being flagged by international watchdogs.
The Travel Rule adds a cross‑border twist. It influences FIU‑IND compliance by demanding that any transaction above a set threshold (currently ₹2 lakhs) include the sender’s and receiver’s full identity data. For DeFi platforms that traditionally operate pseudonymously, this means integrating KYC layers or partnering with compliant custodians. Failure to share this data can trigger fines or freeze of assets, as seen with the Bexplus suspension last year.
International bodies like FinCEN in the U.S. and the EU’s MiCA framework monitor Indian crypto flows through the same Travel Rule channels. Their guidelines require Indian firms to adopt compatible data formats, effectively linking local compliance to global standards. This connection explains why a crypto‑backed stablecoin like CAD Coin (CADC) must adhere to both Indian FIU rules and overseas AML expectations before being listed on Indian exchanges.
Real‑world examples illustrate the stakes. The Cryptex review highlighted how a lack of FIU registration led to user withdrawals being blocked. Meanwhile, the Bexplus assessment showed that a no‑KYC, high‑leverage model can attract traders but also draws regulator attention fast. Both cases teach that compliance isn’t just paperwork—it directly impacts a platform’s ability to stay operational.
If you’re building a new crypto service, follow a simple compliance checklist: register with the FIU, embed AML software, enable Travel Rule data sharing, appoint a compliance officer, and run quarterly audits. Each step enables you to meet the core requirements and positions your project for future expansions into other jurisdictions.
Looking ahead, the Indian government plans tighter reporting thresholds and possible licensing for DeFi protocols. Staying ahead means monitoring FIU announcements, updating KYC modules, and preparing for more granular transaction logs. By treating compliance as an ongoing process rather than a one‑time filing, you can avoid the pitfalls that have sidelined many exchanges.
Below you’ll find a curated selection of articles that dive deeper into each of these topics—exchange reviews, regulator updates, and practical how‑tos—so you can see the rules in action and apply them to your own crypto ventures.
Learn if Indian businesses can legally accept cryptocurrency, tax duties, AML rules, and upcoming COINS Act changes in this 2025 guide.
