India seems to understand that it is better to regulate the crypto sector than to fight it. In the face of legislative challenges, India’s Financial Intelligence Unit (FIU) is considering allowing several offshore exchanges to resume operations, provided they adhere to strict anti-money laundering rules.
FIU-India: A Tough Policeman for Crypto
The FIU-India, as a good financial sheriff, in an India which is finally opening its doors to Chinese investments, wants to be strict on anti-money laundering rules. After having allowed Binance and KuCoin to resume operationshe is now considering giving Green light for two more offshore exchanges by March 2025.
That said, be careful, this is not the funfair. To win this entry ticket, the platforms must prove their Transparency on transactions and report any suspicious activity.
As one official put it, “ Only after full due diligence will we allow an exchange to operate. “.
If exchanges want to set foot on Indian soil, they will also have to pay a small hefty bill, such as the fine imposed on Binance of $2.25 million.
- Fine imposed on KuCoin: Rs 35.5 lakh (~$43,000);
- Binance fined Rs 18.8 crore (~$2.25 million);
- Return of exchanges planned for end of FY25.
Crypto under constant surveillance
The FIU has not only one eye, but both eyes on the exchanges. Last December, nine exchanges, including Binance (BNB) and KuCoin have taken a serious legal hit for failing to comply with Indian lawsTheir sites had been blocked, but some, like KuCoin, quickly settled their debts to resume service.
Today, the FIU is looking closely four new requests. For these platforms, the resumption of activities will require full compliance with the rules. And this rigor is not about to relax, because the FIU even plans to increase the number of audits on platforms that are already authorized, just to avoid being fooled a second time.
By rethinking its crypto policy, India seems to want to rein in offshore exchanges while remaining firm on regulation.
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