India’s financial watchdog, the Financial Intelligence Unit (FIU), has received new petitions from offshore cryptocurrency exchanges seeking to resume operations in India.

According to a June 14 report from a local news outlet, a senior government official indicated that four additional crypto exchanges have requested permission to restart operations in India. This fresh request follows the approval of global crypto exchanges Binance and KuCoin by the financial regulator to resume their activities in the country. Both exchanges were previously banned due to non-compliance with anti-money laundering policies.

KuCoin addressed its previous non-compliance issues by paying a penalty of ₹34.5 lakh (approximately $41,200), which led to the lifting of the ban on its websites in India. Conversely, Binance is still in the process of settling its liabilities and is expected to pay a $2 million fine. “We expect them to go live very soon,” the official said. The identities of the four new applicants were not disclosed.

India currently has 46 registered crypto companies, and with the approvals of KuCoin and Binance, the total will soon reach 48. Last year, several other crypto exchanges, including Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex, were banned. This negatively impacted the Indian cryptocurrency industry and drove many traders to foreign exchanges.

Recently, Binance stopped allowing cash payments for cryptocurrency transactions between users in India. This decision aims to comply with regulations and enhance its market reputation, despite limiting a previously available payment method (cash versus bank transfer) for crypto transactions.

India has been making attempts to integrate the cryptocurrency industry into its banking system. Last year, the government mandated that cryptocurrency companies collect Know Your Customer (KYC) details and register with the FIU. These rules apply to all Virtual Asset Service Providers (VASPs) operating in India, regardless of their physical location.

By mandating FIU registration and adherence to the Prevention of Money Laundering Act (PMLA), India seeks to integrate the crypto sector into its existing financial system and establish a regulatory and monitoring framework.

For the latest updates on cryptocurrency regulations and market trends, visit Global Crypto News.

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