India's Financial Intelligence Unit (FIU) will review petitions from seven major offshore cryptocurrency exchanges seeking to resume operations in the country after a ban.
Reasons for Ban
Exchanges Bitfinex, MEXC Global, Kraken, Huobi, Gate.io, Bittrex, and Bitstamp were previously banned for non-compliance with India's Prevention of Money Laundering Act (PMLA).
Requirements for Crypto Exchanges
The exchanges must commit to following PMLA regulations, including proper registration, Know Your Customer (KYC) norms, and reporting suspicious transactions. Additionally, they will need to pay penalties, with the exact amounts to be decided based on their submissions.
Prospects and Current Situation
The exchanges also face a significant hurdle: settling overdue goods and services tax (GST) estimated at ₹2,900 crore. In March 2023, virtual digital assets service providers were brought under the Anti-Money Laundering and Counter Financing of Terrorism (AML-CFT) framework, requiring their registration in India. As of now, 38 crypto entities are registered under this framework.
Reviewing the petitions and meeting the required conditions could pave the way for the resumption of these exchanges' operations in India.
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