India’s Financial Intelligence Unit is reportedly reviewing four offshore cryptocurrency exchanges for potential approval to resume operations following the lifting of bans on Binance and Kucoin. The focus is on ensuring compliance with anti-money laundering regulations, including transaction transparency and reporting of suspicious activity.
FIU-India May Permit More Offshore Crypto Exchanges Next Year
India’s Financial Intelligence Unit (FIU-India) is reportedly reviewing requests from four offshore cryptocurrency exchanges to resume operations by March 2025, following the earlier lifting of bans on Binance and Kucoin. A source familiar with the review process told local news outlets:
We have received requests from four more offshore crypto exchanges to operate in India, and we assume that at least two of them will be permitted to resume operations by end FY25.
“This would be after undergoing a thorough review of transaction visibility, suspicious transaction reporting (STR), and other related issues,” the source added.
The official further explained that FIU-India is focused on ensuring compliance with anti-money laundering regulations before granting permission, emphasizing: “Only after complete due diligence, will we allow any crypto exchange to operate in India. We are very strict about compliance.”
The Indian Financial Intelligence Unit recently authorized offshore cryptocurrency exchanges Binance and Kucoin to operate in India as Virtual Asset Service Providers (VASPs). FIU-IND Director Vivek Aggarwal confirmed both exchanges are now registered, allowing full transaction visibility and initiating the suspicious transaction report process.
Kucoin resolved non-compliance issues, paying a fine of Rs 35.5 lakh (~$43,000), which led to the lifting of its website ban. The FIU-India has fined Binance $2.25 million (₹18.8 crore) for non-compliance with AML regulations. Last December, the Indian government barred access to nine offshore exchanges. Aggarwal stated that while offshore exchanges need not form separate Indian entities, a compliance officer registered with FIU-IND is required.
