Summary of this article
FIU-IND seeks data on crypto OTC trades exceeding USD 10,000.
OTC trades occur privately outside exchanges and public order books.
Registered exchanges must maintain KYC records and report suspicious transactions.
Crypto adoption in India is increasing with more people and larger investors entering the market. As the industry grows, the government is also paying more attention to transparency and stronger anti–money laundering rules.
Within this framework, the Financial Intelligence Unit (FIU-IND) has stepped up scrutiny of large over-the-counter cryptocurrency transactions.
The Financial Intelligence Unit (FIU-IND) has asked at least three leading crypto exchanges to share over-the-counter (OTC) trade data for transactions above USD 10,000, as reported by The Economic Times.
Exchanges are expected to maintain records of OTC transactions from January onwards, and FIU can seek additional details in cases where Suspicious Transaction Reports (STRs) submitted by platforms are insufficient.
What is an OTC Crypto Transaction
An OTC (over-the-counter) trade refers to a transaction privately negotiated between two parties and settled outside the public exchange order chart. OTC trades are large crypto deals where buyers and sellers agree on a price directly, instead of trading on a public exchange.
These trades don’t appear on regular market charts, so they are less affected by sudden price changes. So they are often used for large transactions. Some people take their crypto to private wallets after the trade, instead of leaving it on exchanges.
As these deals are generally with larger or private clients, the KYC process can be more exhaustive. In some cases, there have also been concerns about the use of fake documents.
Financial Intelligence Unit (FIU-IND)
FIU-IND is part of the Ministry of Finance and tracks suspicious financial transactions to help prevent money laundering. In the case of crypto, exchanges that are operating in India or supporting Indian users will have to register as reporting entities with FIU-IND.
After registration, exchanges must keep user KYC details, watch transactions, report any suspicious activity, and file STRs (Suspicious Transaction Reports). They also need to share information with anti–money laundering agencies or other authorities when asked.
Before this update, Binance had also introduced changes to its transfer process by requiring additional details for crypto deposits and withdrawals. It applies only to users in India and has been in effect since June 22, 2026.
