India FIU Demands Records of Crypto OTC Trades Over $10,000

• India FIU seeks OTC crypto trade records above $10,000 from major exchanges.
• Exchanges must identify beneficial owners behind private crypto transactions.
• New rules require OTC trade records retention from January 2026 onward.

India’s Financial Intelligence Unit (FIU) has directed major cryptocurrency exchanges to submit records of over-the-counter transactions exceeding $10,000. The request reflects increasing regulatory scrutiny of large private crypto trades. Authorities are seeking greater transparency around transaction participants and beneficial ownership structures.

FIU Targets Large OTC Transactions

India’s FIU has requested information on over-the-counter cryptocurrency trades valued above $10,000 from three major exchanges. The directive focuses on transactions completed outside public exchange order books through private arrangements.

Regulators want exchanges to identify the ultimate beneficial owners involved in these transactions. The request covers private companies, intermediaries, trusts, and other entities participating in large crypto deals.

Authorities have instructed exchanges to trace and retain relevant records beginning from January 2026 onward. The measure aims to address transparency concerns surrounding large transactions conducted through OTC channels.

OTC trading remains popular among institutional investors and high-net-worth clients seeking reduced market impact. These transactions allow participants to execute large orders without significantly affecting public market prices.

However, regulators believe private trading arrangements may present additional compliance challenges. Ownership structures can become difficult to verify when multiple entities participate in a transaction.

Officials are reportedly concerned that complex corporate arrangements could obscure the true source of funds. As a result, exchanges may face stricter obligations when reviewing large OTC transactions.

Compliance Requirements Continue Expanding

The latest request forms part of India’s broader effort to strengthen anti-money laundering oversight across digital asset markets. Regulators have steadily increased compliance expectations for cryptocurrency service providers during recent years.

Earlier regulatory guidance introduced enhanced customer verification requirements for crypto platforms operating within the country. Exchanges were instructed to implement stronger identity verification procedures and conduct more frequent customer reviews.

The new focus on OTC transactions extends regulatory attention beyond traditional exchange trading activity. Authorities are now examining private trading channels that facilitate substantial cryptocurrency transfers.

Consequently, exchanges may need to enhance documentation requirements for institutional and corporate clients. Additional information regarding beneficial ownership, transaction purposes, and funding sources could become necessary.

Market participants involved in large OTC transactions may also experience longer onboarding and verification processes. Greater scrutiny could increase administrative requirements before transactions receive approval.

Meanwhile, the FIU‘s latest directive highlights growing efforts to align crypto oversight with broader financial compliance standards. Regulators continue prioritizing transparency as digital asset adoption expands across domestic markets.

The development signals that authorities are paying closer attention to private crypto transactions. Exchanges and OTC desks will likely face increased reporting responsibilities as regulatory expectations continue evolving.

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