As a seasoned crypto investor with roots deeply entrenched in the dynamic world of digital assets, I find myself both excited and cautiously optimistic about the recent developments unfolding in India. The approval process for four offshore cryptocurrency exchanges to resume operations by March 2025 is a significant stride towards mainstream adoption of crypto in one of the fastest-growing economies globally.


The Financial Intelligence Unit (FIU-India) is currently assessing applications from four overseas cryptocurrency exchanges, hoping to resume operations by March 2025. This decision comes after the lifting of restrictions on Binance and Kucoin. The review aims to ensure that these exchanges adhere to Anti-Money Laundering (AML) regulations regarding transactions and reporting of suspicious activities.

In a previous instance, FIU-India allowed Binance and Kucoin to operate in India as Virtual Asset Service Providers (VASPs). However, before they could proceed with trading, both platforms had to address non-compliance issues. Kucoin paid approximately Rs 35.5 lakh ($43000) to lift the ban on their site, while Binance was penalized $2.25 million or ₹18.8 crore for failing to adhere to Anti-Money Laundering (AML) regulations. In December last year, the Indian government also halted operations of nine more international platforms by freezing them under the Prevention of Money Laundering Act (PMLA), a law designed to maintain transparency and combat fraud.

Binance, KuCoin Lead as First Foreign Exchanges Registered in India

On May 10th, Binance and KuCoin became the first foreign crypto exchanges to register with FIU-India. Since then, they’ve had a successful return to the market, attracting even more interest from international competitors. This positive trend has sparked interest among four other offshore exchanges, suggesting that there is a global readiness to enter the Indian market by June.

India is rapidly becoming a lucrative destination for cryptocurrency trading platforms, with firms raking in more than a billion dollars in crypto-related earnings. Yet, the industry’s regulation remains challenging.

At present, all cryptocurrency transactions within India are subject to a Tax Deduction at Source (TDS) fee of 1%, and businesses’ profits are taxed at a rate of 30%. Furthermore, foreign exchanges operating in India need to have a designated compliance officer and adhere to the laws set by FIU-India to ensure legal conduct.

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2024-09-06 20:46