India’s financial intelligence unit is probing Binance and private crypto wallets over a suspected spike in cross-border transfers from Pakistan, potentially tied to illicit financing networks.
Amid growing security concerns, India’s Financial Intelligence Unit (FIU-IND) is intensifying its investigation into Binance and several cryptocurrency exchanges over allegations of digital assets being funneled through private wallets from Pakistan for illegal and terror-linked activities. Officials stated that Binance is the most commonly used platform for these transactions and noted increased volumes near sensitive border zones. FIU-IND, in collaboration with enforcement agencies, is collecting data to trace these fund flows and identify suspicious accounts. Binance, registered with the FIU since August 2024, has cooperated with investigators, while Wazirx denied any involvement, citing halted operations since July 2024. Separately, an Ahmedabad-based crypto scam involving Nepal-based fraudsters was recently uncovered with Binance’s assistance. As India looks to strengthen oversight, new compliance measures are expected under the Prevention of Money Laundering Act to curb misuse of digital currencies for crime and terrorism. A recent FATF report has further amplified global concerns.
