Four offshore crypto exchanges eye return to Indian market

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As a crypto investor with experience in the Indian market, I’m keeping a close eye on the latest developments regarding cryptocurrency exchanges operating in India. The news of four additional offshore exchanges seeking permission to resume operations here is certainly encouraging, following the approvals of Binance and KuCoin.

The Financial Intelligence Unit (FIU) in India has been presented with fresh applications by overseas cryptocurrency trading platforms, aiming to restart their activities within the Indian jurisdiction.

Based on a June 14 report by Business Standard, a top government authority revealed to the publication that four more crypto exchanges have applied for approval to resume their activities in India.

As a crypto investor, I’m excited about the recent development where Binance and KuCoin have received approval from India’s financial regulator to resume their operations in the country. This news comes as a welcome relief for those of us who have been eagerly waiting for these popular exchanges to return to the Indian market.

As a researcher studying money laundering policies in India, I’ve discovered that both transactions were previously prohibited due to their non-compliance with the applicable anti-money laundering regulations.

As a crypto investor, I can share that KuCoin addressed past non-compliance concerns by paying a fine of approximately $41,200 (equivalent to ₹34.5 lakh). Subsequently, the restrictions on their websites in India were lifted.

From my perspective as an analyst, Binance is currently working on resolving its outstanding obligations and is projected to incur a penalty amounting to $2 million.

“We expect them to go live very soon,” the official said.

The official did not reveal the identities of the four new applicants.

As a researcher studying the crypto industry in India, I’ve discovered that there are currently 46 legally registered companies operating in this sector. Exciting news comes from the approval processes of Kucoin and Binance, which, once completed, will add two more companies to this list, bringing the total number to an impressive 48.

As a crypto investor, I’ve noticed that last year, some major crypto exchanges like Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex faced bans in India. This unfortunate turn of events significantly affected the Indian cryptocurrency industry, forcing many traders like myself to seek alternative platforms outside the country.

As a crypto investor, I’ve noticed that Binance has recently disallowed cash payments for cryptocurrency transactions between users in India. This move aims to adhere to regulatory requirements and bolster their market standing, even if it means restricting the use of cash as an alternative payment method compared to bank transfers for crypto transactions.

India has been making attempts to integrate the cryptocurrency industry into its banking system.

In the previous year, the administration imposed a requirement on cryptocurrency businesses to gather Know Your Customer (KYC) information and register with the Financial Intelligence Unit (FIU).

Virtual Asset Service Providers (VASPs) based in India, irrespective of their geographical position, are bound by these regulations.

As a crypto investor, I understand that India is taking steps to bring cryptocurrencies under its existing financial regulations. By requiring registration with the Financial Intelligence Unit (FIU) and compliance with the Prevention of Money Laundering Act (PMLA), India aims to create a robust regulatory framework for the crypto sector. This move will enable effective monitoring and prevent any potential misuse of cryptocurrencies for illegal activities, ultimately ensuring a secure and transparent investment environment.

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2024-06-14 15:43