FIU-India: An Inflexible Enforcer for Crypto

India seems to understand that it is better to regulate the crypto sector rather than combat it. Facing legislative challenges, India's Financial Intelligence Unit (FIU) is considering allowing several offshore exchanges to resume their operations

India appears to be pivoting towards regulating the crypto sector rather than outrightly combating it. In a bid to address the legal challenges faced by offshore exchanges, the Financial Intelligence Unit (FIU) of India is considering allowing several of them to resume operations, albeit with stringent anti-money laundering measures in place.

FIU-India: A Strict Enforcer in Crypto

The FIU-India, which acts as a vigilant financial sheriff in an India that is finally opening its doors to Chinese investments, is being rigid on anti-money laundering rules. Having already authorized Binance and KuCoin to resume activities, it is now considering greenlighting two more offshore exchanges by March 2025.

However, it's crucial to note that this is not a free-for-all entry into the Indian market. To earn this entry ticket, platforms must showcase transparency in transactions and report any suspicious activity. As an official stated, "only after complete diligence will we authorize an exchange to operate."

Moreover, hefty fees will also be levied on exchanges that wish to set foot on Indian soil, such as the $2.25 million fine imposed on Binance.

Crypto Under Constant Surveillance

The FIU is not keeping a single eye on the exchanges; both its eyes are firmly fixed on them. In December, serious legal action was taken against nine exchanges, including Binance (BNB) and KuCoin, for not adhering to Indian laws. Their websites were blocked, but some, like KuCoin, quickly settled their dues to resume operations.

Currently, the FIU is examining four new applications closely. For these platforms, resuming operations will hinge on complete adherence to the rules. And this strictness is not about to relax, with the FIU even planning to increase audits on already authorized platforms to avoid being shortchanged a second time.

By recalibrating its crypto policy, India appears to be aiming to control offshore exchanges while remaining steadfast on regulation.

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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose