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India’s crypto market could possibly be on the verge of welcoming back two major offshore exchanges by March 2025. This potential development follows a comprehensive review of registration requests submitted by four foreign platforms to India’s Financial Intelligence Unit (FIU). According to <a href="https://www.business-standard.com/markets/cryptocurrency/two-more-offshore-crypto-bourses-may-get-nod-to-resume-india-operations-124090301224_1.html" rel="nofollow noopener" target="_blank">sources</a> familiar with the process, two of these exchanges may be allowed to resume operations by the end of the 2025 financial year, marking a significant shift for the country’s crypto landscape. This comes after a series of regulatory actions by the FIU, which last year cracked down on several well-known exchanges, including Binance and KuCoin, for failing to comply with India’s anti-money laundering regulations.&nbsp; 
<h2 id="b-offshore-exchanges-under-review-b">Offshore Exchanges Under Review</h2> 
The FIU’s review of these offshore platforms is part of an ongoing effort to tighten regulations around cryptocurrency trading and to ensure compliance with India’s stringent financial laws. While the names of the exchanges under review remain undisclosed, insiders suggest that the FIU is closely examining their transaction transparency, suspicious activity reporting, and overall operational compliance.“Only after complete due diligence will we allow any crypto exchange to operate in India. We are very strict about compliance,” a source said, underscoring the high bar set by the regulator for foreign platforms. 
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 India’s FIU Poised to Greenlight Two More Global Crypto Platforms By the End of 2025
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This follows a broader crackdown in 2023 when the FIU issued show-cause notices to nine offshore exchanges, including prominent names such as Binance, KuCoin, Huobi, Kraken, and Bitstamp. These platforms were accused of not meeting the necessary registration requirements under India’s Prevention of Money Laundering Act, which mandates that crypto exchanges register as reporting entities with the FIU. In response, Indians were blocked from accessing these platforms’ websites and mobile apps, effectively halting their operations within the country. 
<h2 id="b-compliance-and-penalties-b">Compliance and Penalties</h2> 
For foreign exchanges eyeing a return to India’s booming crypto market, compliance with the country’s regulations will be paramount. According to the FIU, any exchange seeking approval will undergo a detailed review of its transaction visibility and reporting mechanisms. Penalties are expected to be imposed based on each exchange’s scale of operations prior to the 2023 ban and the extent of their non-compliance. 
KuCoin, for instance, became the first offshore exchange to meet the FIU’s standards, paying a fine of INR 34.5 lakh (approximately $41,000). Binance, however, faced a much larger penalty, paying $2.25 million to settle its non-compliance issues with Indian authorities. These penalties may serve as a benchmark for other exchanges looking to enter or re-enter the market. 
Singapore-based Bitget is another exchange currently in discussions with the FIU regarding its compliance status. Sources suggest that penalties could vary significantly depending on the extent of each platform’s previous operations in India and their efforts to meet regulatory requirements. 
<h2 id="b-is-crypto-market-booming-in-india-b">Is Crypto Market Booming In India?</h2> 
India’s cryptocurrency market according to different crypto analysts and their surveys, has emerged as one of the fastest-growing in the world. A 2023 <a href="https://www.chainalysis.com/blog/2023-global-crypto-adoption-index/" rel="nofollow noopener" target="_blank">report</a> by Chainalysis identified India as having the highest rate of cryptocurrency adoption globally. In that year alone, the market generated over $1 billion in revenue, underscoring the vast potential for growth in the sector. A younger, tech-savvy population has been a driving force behind this rapid adoption, with increased interest in blockchain technology and decentralised finance across the country. Despite the regulatory challenges, India’s large user base presents a lucrative opportunity for foreign exchanges. 
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However, the road ahead is not without hurdles. In addition to compliance with anti-money laundering laws, foreign exchanges are expected to register under India’s Goods and Services Tax (GST) regime, which could add significant operational costs. Binance, for instance, was required to pay $86 million in unpaid GST dues on transaction fees collected from Indian customers before the 2023 ban.&nbsp; 
<h2 id="b-looking-ahead-compliance-as-the-key-to-growth-b">Looking Ahead: Compliance as the Key to Growth</h2> 
India’s <a href="https://thebitjournal.com/dormant-bitcoin-worth-1-7b-resurfaces/">crypto</a> market is poised for further growth, but only those platforms that can meet the country’s strict regulatory requirements are likely to succeed. The FIU’s actions in 2023 sent a clear message to the industry: compliance is not optional. The upcoming approvals of two more offshore exchanges could be a sign that India is open to foreign investment in the crypto space, but it is clear that this will be contingent on strict adherence to local laws. 
As global exchanges look to re-enter India, the stakes are high whether you’re a crypto aficionado or just a newbie in the world of crypto. Foreign exchanges that can demonstrate transparency, accountability, and full compliance with India’s financial regulations will be well-positioned to capitalise on the market’s growth.

India’s FIU Poised to Greenlight Two More Global Crypto Platforms By the End of 2025

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The Bit Journal

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