Overview
- India’s Financial Intelligence Unit has asked at least three major exchanges to preserve and hand over over‑the‑counter crypto trade records above $10,000, covering transactions from January 2026 onward.
- The request targets OTC desks and private settlements because those trades often settle to private wallets and use intermediaries or shell companies that make beneficial ownership checks harder.
- Regulators are using powers under the Prevention of Money Laundering Act and the $10,000 threshold follows the Financial Action Task Force standard for flagging significant transfers.
- Exchanges will face heavier documentation and record‑keeping for OTC desks, including tracing source and destination wallets, which could slow large institutional deals and delay withdrawals.
- The step builds on tougher KYC guidance issued earlier this year and may push some privacy‑focused trading offshore even as it raises onshore compliance and traceability for large crypto flows.