India’s Crypto Market to Expand: Two More Global Exchanges to Get Approval

• India’s FIU is planning to approve two more offshore crypto exchanges to join Binance and KuCoin.
• The approval follows a rigorous evaluation of features, including transaction visibility and STR.
• The FIU hasn’t yet revealed the names of the exchanges under review.

India’s crypto market may soon welcome more global exchanges, signaling a potential expansion beyond current players like Binance and KuCoin, that have most recently gained approval.

Reports suggest that India’s Financial Intelligence Unit (FIU) is close to granting approval to two additional offshore exchanges. This move comes after nine previously banned foreign exchanges sought re-entry into the Indian market.

Offshore Exchanges Seek Re-entry

Nearly four offshore crypto exchanges previously banned in India due to regulatory non-compliance have requested approval from the agency. The regulators revealed that at least two of the exchanges would likely receive approval by the end of 2025, allowing them to resume operations in the country.

The approval process involves a thorough evaluation of features, including transaction visibility, suspicious transaction reporting (STR), among others that ensure regulatory compliance. Emphasizing the importance of compliance, an FIU official stated:

“Only after complete due diligence, will we allow any crypto exchange to operate in India.”

Previously, India banned international crypto exchanges like Binance, KuCoin, and OKX, citing noncompliance with crypto regulatory policies. These platforms were then formally warned on their potential tax evasion and anti-money laundering violations, and were asked to explain their actions.

Read also: India’s Tax Authorities Demand Over $86 Million in GST from Binance

Shortly after, with a penalty of $2.25 million, Binance reentered the Indian crypto market, becoming the first offshore crypto exchange, along with KuCoin, to be cleared by the FIU. While the authority considered the fine “substantiated,” it provided additional guidance to the exchange to ensure strict regulatory compliance.

FIU’s Commitment to AML Enforcement

The FIU remains committed to strictly enforcing Anti-Money Laundering (AML) regulations to maintain a robust framework to prevent financial crimes. The agency declared that the two exchanges awaiting approval may also face potential penalties in future, similar to the cases of Binance and KuCoin. The agency, however, has not yet disclosed the names of the exchanges under review.