Woofun AI reports that India's financial intelligence agency has directed three prominent local cryptocurrency exchanges to submit detailed records of over-the-counter (OTC) transactions valued at more than $10,000. This regulatory mandate requires platforms to maintain comprehensive OTC documentation dating back to January 2026, with a specific focus on identifying beneficial ownership. The measure targets scenarios where private entities or intermediaries might obscure the true originators of funds.

While OTC desks facilitate large-volume trades by shielding buyers from public market volatility, regulators view these channels as high-risk vectors for money laundering, tax evasion, and illicit cross-border capital flows. Despite India's status as a leading global cryptocurrency market, official data regarding the scale of its OTC sector remains unavailable.