Key Notes
- FIU is probing Binance and WazirX for suspicious crypto flows.
- J&K agencies found suspected wallet links to Pakistan-based handlers.
- A Singapore court ruling may decide WazirX users’ crypto rights.
India’s Financial Intelligence Unit (FIU) is reportedly collecting data from the leading crypto exchange, Binance, to track crypto transfers into private wallets that may be linked to Pakistan.
According to a recent report by Money Control, these wallets, not tied to exchanges, have raised alarms that some transactions could fund illegal or terror-related activities in India, particularly in Jammu & Kashmir.
This comes a year after Binance resumed operations in India after paying a $2.25 million fine to regain FIU compliance after a prior AML non-compliance block in December 2023.
An official stated that Binance is cooperating with authorities in investigating the suspicious transactions. Last year, the exchange assisted India’s Enforcement Directorate (ED) in investigating financial crimes, which led to the arrest of up to four individuals.
WazirX Under Scrutiny Over Crypto Activity
India’s largest crypto exchange, WazirX, which is popular for cross-border crypto transfers, is also under FIU’s close watch. Authorities have noticed an increase in crypto activity along the border, intensifying fears of digital assets being used as a channel for terror financing.
WazirX faces further challenges as a July 15 Singapore High Court hearing could determine whether users legally own their crypto on the platform.
Romy Johnson’s 72-page affidavit claims WazirX wallets were linked to ISIS-related activities through TRX token transfers to a Syria-based entity.
This further increases scrutiny for the platform, which recently argued that its parent firm, Zettai, does not need FIU-IND registration.
Bitcoin’s Use in Terror Financing?
The probe reflects the tense India-Pakistan dynamic, with Indian agencies intensifying crypto monitoring in border regions. Recent raids in Jammu & Kashmir reportedly uncovered evidence of Bitcoin
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being used by Pakistan-based handlers to support militant groups.
Despite these security concerns, crypto adoption is booming in both nations. Pakistan has 15–20 million crypto users, ranking ninth globally in 2024. The country set up the Pakistan Crypto Council in March 2025 and the PVARA in July to regulate crypto services.
India is also a global crypto leader, with trading volumes hitting $1.9 billion in late 2024. Yet, the country’s central bank remains cautious, warning of systemic risks. The government is currently reviewing its crypto policies to match global frameworks.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
