India’s Financial Intelligence Unit requested information on over-the-counter crypto transactions worth over $10,000 from three major cryptocurrency exchanges, according to the Economic Times. The step indicates that there is a desire to monitor more closely, especially high-amount transactions that take place off-exchange.
Tighter monitoring of over-the-counter transactions
It was stated that the request was submitted following a meeting held at the end of May. The focus of the review is on companies with closed partnership structure, private capital companies and other structures whose real beneficiaries may be more difficult to identify. Unlike standard trades on the exchange, over-the-counter transactions are generally conducted through direct negotiation between the platform and the customer.
This method can help large buyers limit price volatility in the open market. But it also attracts the attention of regulators because it can reduce the visibility of transactions. Authorities assess that these channels may carry a higher risk of money laundering, tax evasion and cross-border fund movements.
Mini glossary: Over-the-counter trading is when trading takes place directly between the buyer and seller or through a brokerage desk, rather than through a public order book. This structure can reduce price impact in high-volume transactions, but can make it difficult to track the parties to the transaction and the ultimate goal.
India’s Financial Intelligence Unit operates under the country’s Ministry of Finance and collects reports of suspicious financial transactions. Crypto exchanges registered in India were already obliged to report suspicious activities. The final instruction calls for more detailed data on major over-the-counter transactions.
The main focus is on real beneficiary information
According to the news, exchanges were also asked to keep over-the-counter transaction records dating back to January 2026. The Financial Intelligence Unit may request additional information if it finds the suspicious transaction reports provided by the platforms insufficient or if the investigating institutions request additional details.
A crypto brokerage official noted that on the over-the-counter side, customers are mostly private companies, so the identity verification process can be more difficult than for individual investors. According to the same official, verification of company executives and ultimate beneficiaries has become more complex, while fake identity documents remain an ongoing risk for both banks and crypto platforms.
The attraction of this channel for high-income customers, institutional investors and companies is that large amounts can be moved without directly affecting the exchange order book. However, the fact that purchased assets can be more quickly withdrawn to private wallets and then transferred across borders raises additional questions on the audit side.
The regulators’ main concern is to make it clear who the ultimate owner of the funds is. If the buyer is a private company, trust or intermediary structure, it may become more difficult to determine who has control of the money.
A step in line with the global trend
India’s move coincides with the broader global trend to close transparency gaps in crypto markets. In many countries, stricter rules are being introduced regarding identity verification, beneficial owner declaration, transaction reporting and stablecoin activities.
Pressure is mounting for crypto brokers to strengthen transaction monitoring and customer review processes in various jurisdictions, including the United Kingdom, Singapore, Australia and the European Union. The overall picture shows that regulators are no longer content with transactions that appear only on exchange screens, but are also focusing on large transfers that remain outside public order books.
In this context, the compliance burden is expected to increase for over-the-counter desks and corporate customers in India. In large transactions, exchanges will need to reveal the source of funds, the real parties behind the transaction, and where the crypto asset goes after the transaction, with stronger controls.
