India to Track Real Owners in Crypto Deals as FIU Mandates Reporting, Tightening AML Checks from 2026
India has increased its oversight of crypto transactions as the Financial Intelligence Unit (FIU) of India asked exchanges to report large OTC deals. The rule applies to over-the-counter crypto trades above $10,000, which equals around Rs. 9.4 lakh.
This step shows that regulators want better visibility into large crypto movements. Exchanges must now share details about who actually owns and controls the funds involved in these deals. Authorities focus on identifying the real people behind companies, intermediaries, and other entities.
New Reporting Rules for Large OTC Trades
Reports say exchanges must keep records of these OTC crypto trades starting January 2026. Regulators can ask for this data anytime for checks or investigations. This move strengthens anti-money laundering efforts and improves tracking of large transactions.
OTC crypto trades happen outside public exchange systems. Large investors prefer these deals since they avoid sudden price changes in the market. However, these trades often lack transparency, which makes tracking ownership more difficult.
Why Regulators Want More Transparency?
Regulators see this as a risk. Large crypto transfers may involve complex structures like shell companies, which hide the real owner. By collecting beneficial ownership data, authorities aim to remove this confusion and improve financial monitoring.
Recent changes show a clear trend. Crypto platforms already started asking users for detailed sender and receiver information during transfers. These updates show that anonymous crypto use in India is slowly decreasing.
India continues to follow strict tax rules for crypto. A 30% tax on profits and 1% TDS on transactions still apply. Users must also report crypto holdings in tax filings. The new rule focuses only on transparency and monitoring, not taxation.
Impact on Investors and the Crypto Market
India is moving toward stronger control over crypto activities with better tracking systems. This change may make large OTC trades slower and require more documents from investors.
At the same time, improved transparency can build trust in the crypto market. Institutions may feel more confident as rules become clearer and more structured.
The latest step shows that India now focuses on tracking crypto ownership and movement instead of questioning its legality. Large private crypto deals will now face closer attention from regulators.
Disclaimer : Crypto News India does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
