India’s Financial Intelligence Unit (FIU) is reviewing applications from four offshore cryptocurrency exchanges, and two of them could be approved for operations by March 2025, according to sources familiar with the matter. If given the green light, these platforms will join Binance and KuCoin, the only other international crypto exchanges currently allowed to operate in the country.
The move comes amid a crackdown by India’s financial watchdog on unregistered exchanges. Last year, the FIU issued show cause notices to nine major crypto platforms, including Binance, KuCoin, Huobi, Kraken, and Bitfinex, for non-compliance with anti-money laundering regulations. The FIU’s actions followed a mandate from the Finance Ministry in March 2023 requiring all crypto exchanges to register as reporting entities under the Prevention of Money Laundering Act (PMLA).
As part of the enforcement measures, Indian authorities blocked access to websites and apps of the affected platforms. The sources revealed that the two exchanges currently under review would undergo a stringent vetting process before being allowed to resume operations. The FIU will assess transaction transparency, suspicious activity reporting, and other compliance factors. Penalties are expected to be levied on these exchanges based on the extent of their previous non-compliance.
“Only after complete due diligence will we allow any crypto exchange to operate in India. We are very strict about compliance,” the source emphasized.
The review process reflects India’s cautious approach toward regulating the crypto sector, as authorities aim to safeguard against money laundering risks while enabling the digital asset market to flourish responsibly.
Source: crypto.news
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