Nomura aims for crypto trading licence amid regulatory upheaval and market growth

As asset tokenization accelerates globally, industry experts highlight the transformative potential and regulatory challenges of this emerging market, which could reach up to $30 trillion by 2030.Asset tokenization is quickly becoming a key method for changing how ownership and liquidity work in traditional markets. Basically, by turning physical or intangible assets—things like real estate, commodities, stocks, and even art—into digital tokens stored on blockchain networks, companies and investors get things like more transparency, divisibility, and access across borders. Industry watchers believe this market for tokenized assets could grow a lot over the next ten years, although estimates are all over the place, which makes sense given how new and evolving this space really is. According to a detailed industry report, getting a platform for asset tokenization off the ground isn’t just about minting tokens and hooking up wallets. It requires a careful, compliant approach—something much more structured. With the EU’s Markets in Crypto-Assets Regulation (MiCA) due to fully roll out by 2025 and the interest from big institutional players gaining momentum worldwide, having a clear roadmap that addresses legal compliance, technology choices, security, and investor engagement becomes absolutely essential. This way, platforms can grow effectively, stay secure, and meet regulatory and investor requirements from the very beginning and as they evolve. Looking at the market potential, projections are pretty eye-opening. McKinsey & Company believes that the market for real-world assets (RWA) that are tokenized might hit around $2 trillion by 2030. But, they also admit that adoption might be slow at first—mainly because traditional financial infrastructure is tricky to upgrade and navigating regulations isn’t simple. On the other hand, Chainlink, which specializes in decentralized oracles, is more optimistic, suggesting the market could explode to $10 trillion by 2030, thanks to growing institutional interest and clearer regulations boosting confidence. Similarly, digital asset manager 21.co points out a broad range, from about $3.5 trillion in a conservative view to potentially $10 trillion if things go really well, indicating how traditional investments and blockchain tech are merging. Some estimates go even further. Standard Chartered predicts the market could reach a jaw-dropping $30 trillion by 2030, which would really shake up global access, liquidity, and efficiency. Of course, the huge differences—from $2 trillion all the way to $30 trillion—highlight both the enormous growth opportunity and the many uncertainties about how fast things will move, how regulators will respond, and how quickly the necessary tech will develop. Getting tokenization right depends a lot on clearly defining which assets you want to target early on, as well as figuring out the best ownership models. Real estate remains the most common sector being tokenized, mainly through platforms that fractionalize property ownership. But interest is rising also in commodities – like gold and oil – as well as equities and even intellectual property rights. Different ownership structures are being used—ranging from fractional shares that allow smaller stakes, debt tokens that act as evidence of lending, utility tokens that give access rights, or security tokens that line up with traditional securities regulations. The specific assets and models you pick will have a big impact on how well your platform complies, how attractive it is to investors, and how easily the assets can be bought and sold. So, it’s crucial to align your business goals with the legal requirements of the jurisdictions you plan to operate in. Jurisdictional factors are among the trickiest parts, no doubt. The U.S. SEC has strict securities laws that apply heavily to tokenized assets—especially security tokens. Conversely, the EU’s MiCA framework aims to provide clearer rules for crypto-assets, starting in 2025, which should make compliance somewhat easier for platform operators in Europe. Meanwhile, countries like Singapore are proactively creating friendly environments for security tokens through their regulators, like the Monetary Authority of Singapore (MAS). In all cases, having strong Know Your Customer (KYC) and Anti-Money Laundering (AML) processes is absolutely vital—not only to prevent fraud but also to attract serious institutional investors. Licensing, privacy regulations such as GDPR, and partnerships with licensed custodians or brokers add extra layers of complexity—yet also legitimacy—to platform offerings. From a tech standpoint, developers face big choices around blockchain selection, token standards, and scaling solutions. Public blockchains such as Ethereum, Polygon, and Solana are popular because of their transparency and huge user bases. Still, private or consortium chains sometimes make more sense—especially for institutional clients—since they offer more control and privacy. The most common standards like ERC-20 handle fungible tokens, while more specialized options like ERC-1400 cater to security tokens that need to meet compliance rules. Scalability remains a key concern—layer-2 solutions and alternative chains are often used to support high throughput and low transaction fees, which are necessary for retail investors. Smart contracts are at the heart of ensuring compliance and smooth operations. They embed regulatory rules right into the tokens—for example, transfer restrictions, whitelisting, or automated dividend payments. These features not only lower risks but also boost investor confidence by automating what used to be manual financial processes transparently. It's crucial to conduct rigorous internal testing and get external audits from specialists to make sure everything is secure and functioning correctly. Even after launch, continuous oversight, using advanced security tools and hardware modules for key management, helps protect the platform from cyber threats. To maintain trust and legitimacy, tokenized assets need clear links between on-chain data and real-world assets. For physical assets like property or commodities, working with licensed custodians and trusted oracles (which verify things like prices) is critical for keeping tokens reliable. Insurance coverage or escrow accounts add extra safeguards for investors, protecting against operational mishaps or custodial issues. Getting mainstream adoption requires a focus on user experience. Platforms should incorporate features like simple investor dashboards, secondary markets for trading to boost liquidity, automated compliance workflows, multiple wallet options, and straightforward fiat-to-crypto gateways. All of these help make the onboarding and trading process smooth—just like in traditional financial markets. Before launching, best practices include successful testing—using testnets, running load tests, and performing compliance simulations. Engaging real users in beta testing helps reveal gaps or issues early on. Marketing the platform transparently and building trust are also vital for attracting investors quickly. Listing tokens on secondary exchanges or regulated marketplaces increases liquidity and helps determine fair prices, both essential for a healthy ecosystem. It’s worth noting that the landscape—both regulatory and technological—is constantly shifting. Platforms need to stay agile, updating compliance protocols regularly and expanding functionality over time. The goal isn’t just to launch but to build resilient, investor-friendly systems that use blockchain innovation to unlock a massive, trillion-dollar marketplace of tokenized assets in the coming years. Altogether, creating a successful asset tokenization platform involves multiple disciplines—careful asset choice, rigorous legal compliance, cutting-edge tech implementation, strong security measures, and features tailored for investors. By following a thorough, well-rounded checklist covering all these areas, businesses can confidently step into a fast-growing market poised to transform the financial landscape by 2030 and beyond. Source: Noah Wire ServicesVerification / Sources https://medium.com/coinmonks/how-to-create-a-complete-checklist-for-asset-tokenization-platform-development-637036b227b8?source=rss----721b17443fd5---4 - Please view link - unable to able to access data https://cointelegraph.com/news/asset-tokenization-rwa-2-trillion-2030-mckinsey - McKinsey & Company analysts predict that the market for tokenized real-world assets (RWAs) could reach $2 trillion by 2030, despite a 'cold start' in adoption. They note that while tokenization is gaining momentum, broad adoption remains distant due to challenges in modernizing existing financial infrastructure, especially in regulation-heavy industries like financial services. The analysts anticipate that cash and deposits, bonds, and exchange-traded notes (ETNs) will see meaningful adoption first, potentially reaching a $100 billion tokenized market capitalization by 2030. (cointelegraph.com) https://cointelegraph.com/news/chainlink-forecasts-10-trillion-tokenized-asset-market-by-2030 - Chainlink, a decentralized oracle provider, forecasts that the global tokenized asset market could surge to $10 trillion by 2030. The report highlights that institutional adoption and regulatory advancements are driving the rise of tokenized assets, despite recent cryptocurrency market volatility. The current value of tokenized assets is approximately $118.57 billion, with Ethereum dominating the market, holding 58% of all tokenized assets. The report also notes that tokenization can bring liquidity to traditionally illiquid assets like real estate and private equity by representing them as digital on-chain tokens. (cointelegraph.com) https://market.us/report/tokenized-assets-market/ - The global tokenized assets market is projected to reach approximately $2,832.3 billion by 2034, growing at a compound annual growth rate (CAGR) of 60% from 2025 to 2034. In 2024, North America held a dominant market position, capturing more than a 38.8% share, with $10.01 billion in revenue. The market encompasses systems, platforms, and services that convert ownership rights of real-world or financial assets into digital tokens recorded on a blockchain or distributed ledger. These tokens represent fractional ownership, claims, or securities linked to assets like real estate, commodities, private credit, real-estate investment trusts, art and collectibles, equity, and other instruments. (market.us) https://www.assettokenization.com/resources/asset-tokenization-forecasts-range-from-2t-to-30t-by-2030 - Forecasts for the asset tokenization market by 2030 vary dramatically, from McKinsey’s $2 trillion to Standard Chartered’s bold $30 trillion prediction, suggesting a 100x growth from today. These forecasts indicate that tokenization could fundamentally reshape global market access, opening unusual liquidity, efficiency, and opportunities across asset classes from bonds to private equity and infrastructure. The article compares major forecasts, explains their gaps, and discusses their implications for institutions, regulators, and investors worldwide. (assettokenization.com) https://www.coindesk.com/markets/2023/10/17/tokenized-rwas-could-grow-to-a-10t-market-by-2030-as-crypto-converges-to-tradfi-report?ref=newsletter.treehouse.finance - Digital asset manager 21.co reports that the market for tokenized assets could grow to as large as $10 trillion in this decade as traditional financial (TradFi) institutions continue to adopt blockchain technology. The report estimates that the market value for tokenized assets will be between $3.5 trillion in the bear-case scenario and $10 trillion in the bull case by 2030. The convergence between crypto and traditional asset classes, including fiat currencies, equities, government bonds, and real estate, is experiencing unprecedented growth. (coindesk.com) https://clearingandsettlement.com/members/admin/activity/44157/ - The article discusses the varying forecasts for the asset tokenization market by 2030, ranging from McKinsey’s $2 trillion to Standard Chartered’s $30 trillion prediction. It highlights that these forecasts matter because tokenization could fundamentally reshape global market access, opening unusual liquidity, efficiency, and opportunities across asset classes from bonds to private equity and infrastructure. The article compares major forecasts, explains their gaps, and shows their meaning for institutions, regulators, and investors worldwide. (clearingandsettlement.com) Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative appears to be original, with no evidence of prior publication. The article was published on Medium on October 3, 2025, and does not appear to be republished across low-quality sites or clickbait networks. The content is based on a press release, which typically warrants a high freshness score. There are no discrepancies in figures, dates, or quotes compared to earlier versions. The article includes updated data but does not recycle older material. Quotes check Score: 10 Notes: The article does not contain any direct quotes, indicating potentially original or exclusive content. Source reliability Score: 6 Notes: The narrative originates from a Medium post by Coinmonks, a non-profit crypto educational publication. While Medium is a reputable platform, the specific publication's credibility is uncertain due to its non-profit status and lack of verifiable information about Coinmonks. This raises potential concerns about the reliability of the information presented. Plausability check Score: 7 Notes: The claims regarding the growth of the tokenized asset market are plausible and align with projections from reputable sources. For instance, McKinsey & Company estimates that the tokenized market capitalization could reach around $2 trillion by 2030, excluding cryptocurrencies and stablecoins. However, the article's tone and language are consistent with typical corporate or official language, and there are no excessive or off-topic details unrelated to the claim. Overall assessment Veredict (FAIL, OPEN, PASS): OPEN Confidence (LOW, MEDIUM, HIGH): MEDIUM Summary: The narrative presents plausible claims about the growth of the tokenized asset market, supported by projections from reputable sources. However, the source's reliability is uncertain due to the lack of verifiable information about Coinmonks. The absence of direct quotes suggests original content, but the overall assessment remains open with medium confidence due to the source's credibility concerns.

Banks and payment giants are accelerating efforts to integrate stablecoins into international settlement systems, promising faster, cheaper, and more transparent cross-border transactions amid regulatory and technical challenges.Banks and global payment networks are increasingly exploring how to incorporate stablecoins into cross-border payment systems, mainly to improve liquidity management and cut down on the persistent inefficiencies that have long been part of traditional international settlements. Once, stablecoins were largely confined to private issuers, often criticized for limited transparency and weak regulation, but now they’re starting to mature into trusted digital tools embedded within the financial infrastructure we’re all familiar with. Traditional cross-border payments, honestly, suffer from quite a few issues—multiple layers of correspondent banking fees, long settlement periods, exposure to foreign exchange risks, and the costly need to pre-fund nostro accounts. Stablecoins—tied to fiat currencies like the U.S. dollar—offer near-instant, atomic settlement on blockchain platforms and include features like programmable compliance and easier reconciliation. That’s pretty attractive, especially for corporate treasurers who want more efficiency when managing global liquidity. Recently, Coinbase’s CEO Brian Armstrong pointed out the enormous potential here—he estimates the total market for cross-border stablecoin payments could hit $40 trillion, with about 75% of that being business-to-business transactions. Some of the biggest payment companies are the first movers testing stabilitycoin-based solutions. For instance, Visa launched a pilot project to let institutions pre-fund stablecoin balances via Visa Direct, making it possible for recipients to get fiat currency quickly. This kind of approach really shortens the float time—what you might call the delay—associated with conventional cross-border disbursements. It also shifts the perspective on stablecoins, viewing them more as tools for treasury liquidity rather than just speculative assets. Mastercard is working on similar initiatives too, aiming to integrate tokenized settlement into existing infrastructure, while ensuring these systems stay interoperable and meet regulatory standards. These pilots suggest that stablecoins aren’t here to replace traditional payment rails but rather to extend them. Banks themselves are also on the move, actively developing their own issuance and settlement capabilities to better leverage stablecoins for smoother cross-border flows. For example, in Europe, a consortium of nine banks announced on September 25 that they launched a project to issue a euro-denominated stablecoin under the European Union’s Markets in Crypto-Assets (MiCA) regulation, aiming for it to become a trusted European payment standard with near-instant, low-cost, cross-border settlement. Meanwhile, collaborations like Circle working with Finastra aim to embed stablecoins like USDC directly into bank payment hubs, blending the efficiency of blockchain with legacy banking systems. French bank Societe Generale is jumping into this space too, planning to launch a dollar-backed stablecoin on Ethereum and Solana, which clearly shows that major institutions are increasingly committed to these digital assets. That said, there are still hurdles—mainly around interoperability and liquidity fragmentation. Stablecoins can work across multiple blockchains, yes, but they require bridges to transfer value from one network to another. These bridges, well, they introduce complexity and pose risks—liquidity issues, hidden costs, and security vulnerabilities. We’ve seen bridge hacks cause significant losses in crypto, which highlights these risks. Going forward, banks and payment providers have a chance to address these problems by developing standardised cross-chain settlement services and carefully curated liquidity pools, which could help tidy up this fragmented scene. Regulatory clarity is absolutely crucial if these technologies are to gain wider institutional adoption. In the UK, Bank of England Governor Andrew Bailey has called for stablecoins that are widely used to be regulated similarly to traditional banks—think depositor protections and access to central bank reserves. It’s a sign that the consensus is shifting toward requiring stablecoins to function within solid regulatory frameworks, which would, of course, boost stability and user confidence. Over in the United States, recent legislation like the Genius Act has brought clearer rules for stablecoin issuers—something that’s encouraging more institutional interest and initiatives like Visa’s pilot program. On the international front, stablecoins are also playing a role in strategic economic policies. China’s launch of the regulated offshore yuan-stablecoin in Kazakhstan, called AxCNH, aims to bolster cross-border trade and challenge the U.S. dollar’s global dominance. This fits into China’s broader plans around digital currency and initiatives like Belt and Road—using stablecoins as tools for financial diplomacy and international commerce. Big financial players like UBS are also experimenting with private blockchain payment systems that use digital cash tokens to improve cross-border liquidity management and speed up settlement—without exposing transactions to the risks of public blockchain networks. Looking to the future, many experts foresee stablecoins shaping a sort of “network of networks” for global B2B payments. They could enable tokenized assets, on-chain foreign exchange trades, and sophisticated liquidity management tools. Pretty different from overhauling everything overnight, stablecoins are expected to quietly become part of the background infrastructure—driving efficiency, optimizing capital, and supporting new innovations over the next three to five years. Of course, reaching this full potential still depends on solving regulatory uncertainties, operational risks, and the technical challenge of seamlessly bridging different blockchain environments. All in all, the progress made by banks and payment networks to embed stablecoins into cross-border payment systems really marks a significant turning point. From being speculative tokens to becoming crucial infrastructure components, stablecoins promise (or at least aim to deliver) near-instant, low-cost, compliant international settlements that minimize capital lock-up. For those involved in shaping the future of financial infrastructure, this shift presents both a huge opportunity and a big responsibility—making sure that the evolution benefits all, securely and efficiently. Source: Noah Wire ServicesVerification / Sources https://www.pymnts.com/cryptocurrency/2025/stablecoins-reshape-cross-border-payments-banks-networks-step-in/ - Please view link - unable to able to access data https://www.reuters.com/technology/visa-bets-stablecoins-speed-up-cross-border-payments-2025-09-30/ - Visa has announced a pilot program to test the use of stablecoins for international payments, allowing businesses to pre-fund transactions with digital tokens instead of traditional currencies. This initiative aims to accelerate cross-border payments and reduce the need for companies to lock up cash in multiple currencies worldwide. The decision follows the passage of the Genius Act in the U.S., which established clear regulations for stablecoin issuers and has increased institutional confidence in digital tokens. Visa is partnering with undisclosed entities and plans to expand the program next year. While stablecoins raise concerns about competition for traditional financial institutions, Visa’s approach emphasizes integrating stablecoin technology into its existing payment systems rather than replacing them. Experts suggest this marks a shift in stablecoins from a niche crypto tool to critical financial infrastructure. https://www.reuters.com/markets/emerging/chinas-yuan-stablecoin-debut-kazakhstan-signals-blockchain-ambition-2025-09-29/ - China has launched the world’s first regulated offshore yuan-linked stablecoin, AxCNH, in Kazakhstan, a move aimed at leveraging blockchain technology to advance cross-border trade and challenge the dominance of the U.S. dollar in the crypto space. Developed by fintech firm AnchorX using technology from Conflux, a Chinese government-backed blockchain network, AxCNH debuted on September 17, 2025, following approval from Kazakh regulators. This initiative aligns with China’s broader push to internationalize the yuan, supplementing efforts like the central bank digital yuan. Yang Guang, CTO of Conflux, sees this as a strategic entry into blockchain-based global finance and a potential catalyst for change in cross-border payment systems. While stablecoins are generally pegged to fiat currencies and enable efficient digital transactions, China’s step into offshore yuan-linked stablecoins also advances its Belt and Road Initiative by offering new financial tools for participating countries. Despite banning cryptocurrency trading domestically, China is cautiously exploring blockchain’s potential internationally, indicating a positive yet measured regulatory approach moving forward. https://www.reuters.com/sustainability/boards-policy-regulation/widely-used-stablecoins-need-be-regulated-like-money-boes-bailey-says-2025-10-01/ - Bank of England Governor Andrew Bailey stated that stablecoins widely used for payments in the UK should be regulated similarly to traditional banks. This includes implementing depositor protections and granting access to BoE reserve facilities. While Bailey has historically been skeptical of cryptocurrencies, he clarified in a Financial Times article that he is not opposed to stablecoins in principle. However, he pointed out that their current primary function—facilitating entry and exit from cryptocurrency markets—does not qualify them as money-like payment methods. The BoE plans to release a consultation paper in the coming months outlining its regulatory approach, including the proposal for UK stablecoins to have accounts at the BoE to reinforce their credibility and monetary status. https://www.reuters.com/business/finance/societe-generale-launch-dollar-pegged-stablecoin-2025-06-10/ - Societe Generale, a major French bank, will introduce a dollar-backed stablecoin named 'USD CoinVertible' through its crypto subsidiary SG-FORGE, marking the first time a major European lender launches such a cryptocurrency. Scheduled for public trading starting July, the stablecoin will operate on Ethereum and Solana blockchains, with BNY Mellon acting as the custodian for its reserves. This follows SG-FORGE's earlier launch of a euro-denominated stablecoin in 2023, which has seen limited adoption with only €41.8 million in circulation. Stablecoins are cryptocurrencies pegged to traditional currencies like the dollar, enabling seamless large-scale money transfers without traditional banking systems. SG-FORGE aims to use USD CoinVertible for various applications, including crypto trading, cross-border payments, foreign exchange, and collateral management. The token will also be listed on multiple crypto exchanges. This move positions Societe Generale as a pioneering European institution in the rapidly growing stablecoin sector, currently dominated by companies like Tether, which has issued $155 billion worth of dollar-pegged tokens. https://www.reuters.com/business/finance/ubs-pilots-blockchain-based-payment-system-2024-11-07/ - UBS has successfully piloted a blockchain-based payment system called UBS Digital Cash, aimed at enhancing the efficiency of cross-border transactions. The pilot saw transactions conducted with multinational clients and banks, involving domestic operations in Switzerland and cross-border payments in currencies such as U.S. dollars, Swiss francs, euros, and Chinese yuan. Andy Kollegger, head of UBS Institutional & Multinational Banking, emphasized the strategic importance of blockchain solutions for cross-border payments. The system, utilizing a private blockchain network accessible only to permissioned clients, enables automatic payment settlements via smart contracts. UBS plans to expand and develop UBS Digital Cash further to help firms manage and adjust intraday liquidity and maintain higher visibility of their cash positions. https://www.pymnts.com/cryptocurrency/2025/stablecoins-target-network-effect-across-global-b2b-payments - Stablecoins are gaining traction as a faster, more efficient settlement layer in complex cross-border flows, reducing friction, speeding liquidity access and easing working capital constraints for businesses like marketplaces and travel agencies. The real opportunity lies in embedding stablecoins into treasury strategies and capital markets, enabling tokenized assets, on-chain FX and liquidity management, rather than replacing legacy rails outright. Regulatory ambiguity, compliance risks and infrastructure readiness remain hurdles, but over the next three to five years, stablecoins are expected to integrate into a network of networks, powering settlements behind the scenes. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 9 Notes: The narrative presents recent developments in the integration of stablecoins into cross-border payment systems, with specific references to events from late September and early October 2025. The earliest known publication date of similar content is September 30, 2025, with Visa's announcement of a pilot program to test the use of stablecoins for international payments. (reuters.com) The report appears to be based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. The narrative includes updated data and recent developments, justifying a higher freshness score. No recycled content from low-quality sites or clickbait networks was found. No earlier versions with different figures, dates, or quotes were identified. The narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. Quotes check Score: 8 Notes: The narrative includes direct quotes from Visa's CEO Brian Armstrong, stating that cross-border stablecoin payments are likely a $40 trillion opportunity, with the B2B market comprising 75% of that. A search for the earliest known usage of this quote indicates that it was first reported on July 2025. The identical quote appears in earlier material, suggesting potential reuse. The wording of the quote matches previous reports, with no variations identified. No online matches were found for other quotes, raising the score but flagging them as potentially original or exclusive content. Source reliability Score: 7 Notes: The narrative originates from PYMNTS, a reputable organisation known for its coverage of financial technology and payments. This is a strength, as PYMNTS is a recognised source in the industry. However, the report includes a direct quote from Visa's CEO Brian Armstrong, which is not independently verified within the narrative. The lack of direct verification of this quote within the report introduces some uncertainty. Plausability check Score: 9 Notes: The narrative presents plausible claims about the integration of stablecoins into cross-border payment systems, supported by recent developments and statements from industry leaders. The claims are consistent with other reputable sources, such as Visa's announcement of a pilot program to test the use of stablecoins for international payments. (reuters.com) The language and tone are consistent with the region and topic, with no inconsistencies noted. The structure is focused and relevant, with no excessive or off-topic detail. The tone is professional and resembles typical corporate language. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative presents recent developments in the integration of stablecoins into cross-border payment systems, with specific references to events from late September and early October 2025. The content is largely original, with some quotes reused from earlier reports. The source, PYMNTS, is reputable, and the claims made are plausible and supported by other reputable sources. The language and tone are consistent with the region and topic, and the structure is focused and relevant. No significant issues were identified, leading to a 'PASS' verdict with high confidence.

India’s Financial Intelligence Unit has issued notices and ordered the removal of unregistered offshore crypto service providers, marking a decisive step to tighten regulation and curb illegal activities in the digital asset market.India’s Financial Intelligence Unit (FIU-IND) has taken decisive action against 25 offshore virtual digital asset (VDA) service providers for failing to comply with anti-money laundering (AML) regulations under the Prevention of Money Laundering Act (PMLA). This effort underscores the government’s intensified crackdown on unregistered cryptocurrency platforms serving Indian users and aims to tighten regulatory oversight in the digital asset market. The Finance Ministry confirmed that notices were issued under Section 13 of the PMLA, which empowers FIU-IND to examine records, verify client identities, and request reports on suspicious transactions. These notices target firms including CoinW, CEX.IO, Paxful, Huione, BTCC, Changelly, LBank, and others operating from jurisdictions such as Singapore, Hong Kong, the United States, the UK, and more. Violators face penalties of up to Rs 1 lakh per breach, with non-compliant platforms risking shutdowns. Concurrently, separate directives under the Information Technology Act, 2000, have been used to order the removal of unregistered crypto applications and websites accessible within India, effectively restricting user access to these services. This initiative signifies India’s commitment to bringing all digital asset providers, regardless of physical presence, into the scope of its AML and counter-financing of terrorism (CFT) regulations. Since March 2023, virtual digital asset service providers are mandated to register with FIU-IND as reporting entities, fulfilling obligations including record-keeping and suspicious transaction reporting. These rules apply broadly to activities like crypto-to-fiat conversions, asset transfers, wallet management, and other related services. Despite more than 50 service providers registering so far, authorities continue to identify offshore entities operating outside compliance frameworks while actively servicing Indian customers. The government has emphasized that registration and adherence to AML standards are mandatory and that failure to comply presents legal, financial, and operational risks. It also issued a stark warning to investors: cryptocurrencies and NFTs remain unregulated with no guarantee of safety or recourse for losses, highlighting the inherent risks associated with digital assets. India’s robust enforcement reflects a global trend towards greater transparency and AML compliance within the crypto space. Through these measures, regulators aim to set clear boundaries and deter illegal activities, reinforcing that operating outside the regulatory framework will lead to enforcement actions, including app takedowns and access restrictions. The combination of legal notices and directives under the IT Act demonstrates a comprehensive approach to asserting control over a rapidly expanding digital asset market characterized by jurisdictional complexities and evolving regulations. Source: Noah Wire ServicesVerification / Sources https://blockonomi.com/government-targets-25-crypto-firms-for-breaking-anti-money-laundering-rules/ - Please view link - unable to able to access data https://www.business-standard.com/finance/news/fiu-notices-offshore-crypto-platforms-pmla-non-compliance-125100101180_1.html - The Financial Intelligence Unit-India (FIU-IND) has issued notices to 25 offshore Virtual Digital Asset Service Providers (VDA SPs) for operating in India without complying with the Prevention of Money Laundering Act (PMLA), 2002. The entities served notices include Huione (Cambodia), BC.Game (Curaçao), Paxful (USA), Changelly (Hong Kong), CEX.IO (USA/UK), LBank (British Virgin Islands), YouHodler (Switzerland/St Vincent), BingX (British Virgin Islands), PrimeXBT (Saint Lucia), BTCC (UK), CoinEx (Hong Kong), Remitano (Singapore), Poloniex (USA), BitMex (Seychelles), Bitrue (Singapore), LCX (Liechtenstein), Probit Global (Seychelles), BTSE (Lithuania/British Virgin Islands), HitBTC (Hong Kong), LocalCoinSwap (Hong Kong), AscendEx (Singapore), Phemex (Singapore), ZooMex (Cayman Islands), CoinCola (Hong Kong), and CoinW (Singapore). These platforms were found catering to Indian users without registering with FIU-IND, as required under the anti-money laundering and counter-financing of terrorism (AML/CFT) framework. The statement added that under Section 13 of the PMLA, FIU-IND has issued non-compliance notices, while separate directions under the Information Technology Act, 2000 have been issued to initiate takedown of their apps and URLs accessible in India. So far, 50 VDA SPs have registered with FIU-IND. Regulators continue to flag unregistered offshore entities that remain outside the ambit of AML/CFT rules despite actively engaging with Indian customers. Virtual Digital Asset Service Providers were brought under the purview of PMLA in March 2023, requiring them to register as reporting entities and fulfil obligations such as record-keeping and reporting of suspicious transactions. The rules apply irrespective of whether the entity has a physical presence in India. https://www.livemint.com/news/fiu-issues-notices-to-25-offshore-crypto-firms-over-pmla-noncompliance-11759341740047.html - The Financial Intelligence Unit of India (FIU-IND) has issued notices to 25 offshore virtual digital asset (VDA) service providers for alleged non-compliance with India’s anti-money laundering law, the finance ministry said in a statement on Wednesday. The notices were issued under Section 13 of the Prevention of Money Laundering Act (PMLA), which empowers authorities to initiate enquiries, seek audits of records, verify client identities, and demand reports on suspicious transactions. Entities found in violation face penalties of up to ₹1 lakh per breach. The ministry added that the Director of FIU-IND has also issued notices under the Information Technology Act, 2000, seeking takedown of apps and URLs that were operating illegally without PMLA compliance in India. FIU-India, set up in 2004, is the central agency responsible for processing, analyzing, and disseminating information related to suspicious financial transactions. So far, 50 VDA service providers have registered with FIU-IND. However, the agency continues to flag offshore entities catering to Indian users without registration, keeping them outside the anti-money laundering and counter-financing of terrorism (AML-CFT) framework. VDA service providers operating in India (whether offshore or onshore) and engaged in activities like exchange between virtual digital assets and fiat currencies, transfer of virtual digital assets, safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets etc. are required to be registered with FIU IND as reporting entities and also comply with the obligations under PMLA, the ministry said. These obligations are activity-based and are not contingent on physical presence of the entity in India. The regulation casts reporting, record keeping, and other obligations on the VDA service providers under the PML Act which also includes registration with the FIU IND. https://cfo.economictimes.indiatimes.com/news/governance-risk-compliance/government-issues-notices-to-25-offshore-crypto-exchanges-for-violating-anti-money-laundering-rules/124272697 - The Financial Intelligence Unit of India (FIU-IND) has sent notices to 25 offshore virtual digital asset (VDA) service providers for allegedly failing to follow India's anti-money laundering laws, according to a Finance Ministry statement. The notices were issued under Section 13 of the Prevention of Money Laundering Act (PMLA). This section allows authorities to launch investigations, check company records, verify customer details, and demand reports on suspicious transactions. Companies that violate the rules could face fines of up to Rs 1 lakh for each breach. Among the 25 offshore firms served notices are CoinW of Singapore, BTCC of the UK, Changelly of Hong Kong, and Paxful of the US. Other names include Huione of Cambodia, CEX.IO of the US and the UK, LBank of the British Virgin Islands, PrimeXBT of Saint Lucia, Coinex of Hong Kong, Remitano of Singapore, Poloniex of Boston, BitMex of Seychelles, and LCX of Liechtenstein. The FIU-IND has also issued separate notices under the Information Technology Act, 2000, asking for the removal of apps and websites that were operating in India without proper registration under PMLA. FIU-India, which was set up in 2004, is the main agency responsible for collecting and analyzing information about suspicious financial transactions. So far, 50 VDA service providers have registered with FIU-IND. However, several offshore firms continue to operate in India without registering, which keeps them outside the anti-money laundering and counter-financing of terrorism (AML-CFT) framework. The government made it clear that all VDA service providers serving Indian users -- whether based in India or abroad -- must register with FIU-IND and follow PMLA rules. These rules apply to companies engaged in activities like crypto-to-fiat exchanges, transfer of virtual assets, safekeeping of digital assets, or any services giving control over such assets. Registration and compliance are mandatory even if the companies do not have a physical presence in India. https://economictimes.indiatimes.com/news/economy/finance/fiu-ind-issues-notices-to-25-offshore-crypto-exchanges/articleshow/124265777.cms?UTM_Campaign=RSS_Feed&UTM_Medium=Referral&UTM_Source=Google_Newsstand&from=mdr - India's Financial Intelligence Unit (FIU-IND) has issued notices to 25 offshore cryptocurrency exchanges, including Huione and Paxful, for violating anti-money laundering laws. These platforms were serving Indian users without mandatory registration, prompting FIU-IND to order the takedown of their apps and URLs. The notices were issued under Section 13 of the Prevention of Money Laundering Act (PMLA), 2002. The exchanges, including well-known platforms such as Huione, Paxful, Changelly and BitMex, were found to be catering to Indian users without registering with FIU, a violation of the country's anti-money laundering and counter financing of terrorism framework. These offshore exchanges operate from various jurisdictions worldwide but actively solicit Indian users without ensuring compliance with Indian financial laws. The FIU-IND has directed the takedown of applications and URLs of these platforms in India, effectively curbing public access. The virtual digital assets (VDA) service providers operating in India (whether offshore or onshore) and engaged in activities like exchange between virtual digital assets and fiat currencies, transfer of virtual digital assets, safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets etc. are required to be registered with FIU-IND as reporting entity. They are also mandated to comply with the set of obligations as per PMLA, including reporting and record keeping, among others. "These obligations are activity-based and are not contingent on the physical presence of the entity in India," the finance ministry said in a statement. https://www.theweek.in/wire-updates/business/2025/10/01/dcm143-biz-finmin-crypto.html - Financial Intelligence Unit-India, under the finance ministry, has issued notices to 25 offshore virtual digital asset providers, including British Virgin Islands-based LBank and BingX that feature among top 20 crypto exchanges in the world, for non-compliance with norms under the Prevention of Money Laundering Act. The government has also instructed these entities to take down their applications/websites from public access in India, the finance ministry said in a statement on Wednesday. The government had in 2023 brought virtual digital asset providers under the ambit of its law on money laundering. "It must be mentioned that the Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions," it warned. To date, 50 virtual digital assets service providers (VDA SPs) have registered with FIU IND, it said. However, it said, from time to time the entities which are catering to Indian users but not getting registered and thus remain outside the AML/CFT framework are identified by the FIU IND. The VDA SPs operating in India (whether offshore or onshore) and engaged in activities like exchange between virtual digital assets and fiat currencies, transfer of virtual digital assets, safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets etc are required to be registered with FIU IND as Reporting Entity and comply with the set of obligations as mandated under Prevention of Money Laundering Act (PMLA) 2002. These obligations are activity-based and are not contingent on physical presence of the entity in India, it said, adding, the regulation casts reporting, record keeping, and other obligations on the VDA SPs under the PML Act which also includes registration with the FIU IND. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 10 Notes: The narrative is current, with the earliest known publication date being October 2, 2025. No evidence of prior publication or recycled content was found. The report is based on a recent press release from the Indian Finance Ministry, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. The content includes updated data and new material, justifying a higher freshness score. Quotes check Score: 10 Notes: No direct quotes were identified in the narrative. The information is presented in a paraphrased format, with no evidence of identical quotes appearing in earlier material. The lack of direct quotes suggests the content may be original or exclusive. Source reliability Score: 10 Notes: The narrative originates from a reputable organisation, the Indian Finance Ministry, which issued the press release. This enhances the credibility of the information presented. Plausability check Score: 10 Notes: The claims made in the narrative are plausible and align with known regulatory actions in India. The report is consistent with previous actions taken by the Financial Intelligence Unit of India (FIU-IND) against non-compliant crypto exchanges. The language and tone are formal and consistent with official communications. No excessive or off-topic details were found, and the tone is appropriately formal. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is current, original, and based on a recent press release from a reputable organisation, the Indian Finance Ministry. The information is plausible and consistent with known regulatory actions in India. No discrepancies or signs of disinformation were identified.