India’s reopening of doors to offshore crypto exchanges sparks surge in optimism

India has made a significant change to its financial regulatory framework by allowing offshore cryptocurrency exchanges to operate in the country once again. Leading exchanges Binance and KuCoin have secured approvals from India’s Financial Intelligence Unit (FIU-IND), marking a fresh start for cryptocurrencies in India. This comes after a period of bans due to alleged non-compliance with local laws. Binance and KuCoin have successfully navigated the regulatory hurdles by settling penalties and making necessary adjustments. While Binance is still finalizing its compliance procedures, it is currently registered. The reopening of India’s market to these platforms is timely, as the country’s crypto market is ranked as the world’s second-largest, with an inflow of $260 billion in cryptocurrencies from July 2022 to June 2023. This, along with renewed regulatory clarity, could pave the way for a thriving crypto economy in India. The FIU’s willingness to engage in open dialogue and adapt regulations reflects a forward-thinking approach to cryptocurrency regulation, fostering innovation and investment in the sector.