India FIU Targets Large OTC Crypto Deals with New Data Request

Highlights:

• India’s FIU has asked major crypto exchanges to provide records of OTC crypto deals above $10,000.
• Regulators want exchanges to verify beneficial owners and funding sources behind large private crypto transactions.
• Companies and large investors may face stricter compliance checks before completing high-value crypto trades.

India’s Financial Intelligence Unit has asked at least three major crypto exchanges to share records of over-the-counter crypto transactions above $10,000, according to The Economic Times. The request followed a meeting between the agency and exchange operators in late May. Authorities want exchanges to trace and preserve records for OTC crypto transactions above $10,000 completed from January onward.

India FIU Seeks Crypto OTC Trade Records Above $10,000 From Major Exchanges

India’s Financial Intelligence Unit, the country’s anti-money laundering watchdog, has asked three major crypto exchanges to submit information on OTC transactions above USD 10,000, with a focus on… pic.twitter.com/GCU8aWjJDz

— Wu Blockchain (@WuBlockchain) June 23, 2026

The request targets OTC crypto trades that investors execute outside public exchange order books. Large investors often use OTC deals to buy or sell crypto without causing significant price movements on exchanges. These transactions usually occur at fixed prices and often involve institutions, wealthy investors, and corporate clients.

Indian regulators now want exchanges to identify the individuals and entities involved in large OTC crypto transactions. Authorities have asked exchanges to preserve records that identify transaction participants and trace crypto movements. They also want exchanges to provide ownership records, beneficial ownership details, and compliance documents linked to OTC transactions.

OTC Crypto Deals Face More Checks

Regulators have raised concerns that exchanges face greater difficulty verifying participants in large OTC crypto transactions. Many OTC clients operate through private companies, trusts, investment vehicles, and intermediaries. Private companies, trusts, and intermediaries can make it harder for exchanges to identify the true owners of crypto assets.

An official at a crypto intermediary told The Economic Times that exchanges face greater KYC challenges when OTC clients operate through private companies. The official said exchanges often need additional reviews to verify ownership details behind private company transactions.

Exchanges may need to collect ownership records and corporate documents before approving large OTC transactions. Regulators increased scrutiny because false documents, mule accounts, and intermediary structures can weaken KYC and AML controls.

Officials also put emphasis on OTC trades in which clients remove crypto assets to private wallets after settlement. Many OTC clients transfer crypto assets to private wallets shortly after completing transactions. After clients transfer assets from exchange wallets, the exchanges can no longer easily monitor the subsequent wallet activities.

Consequently, regulators are pushing exchanges to confirm wallet ownership, the source of funds, the purpose of a transaction, and the destination of funds. It also seeks to have firms revisit the movement of crypto assets following significant client transactions. The checks are designed to improve the regulation of private trading channels with significant capital flows.

India Expands Crypto Compliance Checks

The latest request follows India’s broader effort to tighten anti-money-laundering controls across the crypto industry. In January, the FIU introduced stricter onboarding requirements for crypto users across registered platforms. The January guidance required exchanges to conduct live selfie verification, geolocation checks, and IP tracking during onboarding.

Indian authorities have already increased enforcement actions against crypto companies operating in the country. Binance previously paid a $2.25 million penalty for anti-money laundering violations in India.

In a related development, Binance will introduce new crypto transfer requirements for Indian users on June 22. Binance users in India must provide beneficiary names, locations, countries of residence, and receiving exchange details for withdrawals from that date. Binance will apply these requirements to all transfers involving external wallets or other exchanges, regardless of transaction size.

JUST IN: 🇮🇳 Binance to require additional sender and beneficiary details for all crypto deposits and withdrawals in India starting June 22, to comply with local regulations. pic.twitter.com/DZGnyiAU4L

— Crypto India (@CryptooIndia) June 22, 2026