Binance and KuCoin, two major cryptocurrency exchanges globally, have re-entered the Indian market following the approval from the country's anti-money laundering watchdog. This move marks their return after facing bans due to unauthorized activities within India.

After overcoming legal hurdles, both Binance and KuCoin have successfully re-established their presence in India, as confirmed by a senior official from FIU-IND, a segment of the Finance Ministry aimed at combating financial crimes. KuCoin has already paid a fine of $41,000 and resumed its operations, while Binance is awaiting the completion of compliance procedures to determine the final penalty.

In 2020, both exchanges were among nine offshore entities prohibited from operating in India. However, their re-entry signifies a shift in the regulatory landscape. While KuCoin quickly resumed services, Binance is in the process of resolving compliance issues.

Market Growth Amid Regulatory Environment

Despite regulatory challenges, the cryptocurrency market in India has shown significant growth. The market was valued at $73.8 million in 2021 and is expected to nearly double by 2025, reaching $123.2 million. By 2030, it could rise to $241.1 million, with a strong compound annual growth rate (CAGR) of 54.11% from 2024 to 2032.

The ongoing expansion of the crypto market in India is driven by regulatory improvements, including the official adoption of the term "virtual digital assets" covering cryptocurrencies and NFTs. Amendments in the Information Technology Act and stringent KYC processes for new users on exchanges are contributing to a more regulated environment.

To operate legally, exchanges must register with FIU India and maintain transaction records for at least five years. Integration with the Prevention of Money Laundering Act has classified exchanges as reporting entities, further enhancing the regulatory framework.