India's financial regulator may approve licenses for two foreign-based crypto exchanges by March 2025. Authorities are reviewing registration applications from four exchanges, though the specific platforms have not been disclosed.
Current Situation
According to a report by local media outlet Business Standard, India's Financial Intelligence Unit (FIU) is currently reviewing registration applications from four offshore cryptocurrency exchanges. Two may get approval to start operations by the end of the 2025 financial year.
Previous Actions
Last year, the FIU issued show cause notices to nine foreign cryptocurrency exchanges, including Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. The regulator stated that these platforms had not met registration requirements and were non-compliant with India’s anti-money laundering regulations. Subsequently, access to the websites and mobile apps of the affected platforms was blocked.
Future Steps
Business Standard’s source revealed that the other two exchanges seeking approval would face a thorough review of transaction visibility, suspicious transaction reporting, and related compliance issues before being granted permission to resume operations. Additionally, penalties would be determined based on the scale of their previous operations. Furthermore, the Indian government recently announced plans to release a public consultation paper on comprehensive cryptocurrency regulations in October 2024.
In conclusion, two foreign-based crypto exchanges might be granted permission to operate in India by March 2025, marking a significant development in the country's cryptocurrency market.
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