Foreign crypto exchanges eye India for business opportunities

Following the re-entry of Binance and Kucoin on Indian soil, four more foreign exchanges are viewing the country as a lucrative place to run their operations. They have put out feelers and making the right sounds.  

In the case of Binance and Kucoin, they received consent from the financial regulator. Both the entities went through a ban period, with Kucoin up against a fine amount, to the tune of $41,282, whereas, has a penalty amounting to $2 million facing it. As per the concerned authorities, they will soon be functional. 

Presently, India is known to have 46 certified crypto companies, with the figure reaching 48, following the official entry of the two exchanges once again. Gate.io, Bittrex, along with Bitstamp, MEXC Global and Bitfinex. As expected, this adversely affected the crypto space, compelling users to turn their attention towards foreign exchanges. 

Of late, Binance has put a hold on cash-related payments for trading in cryptocurrencies amongst users in India. This is for creating a proper impression regarding its intentions, that they are not malafide in any way. 

India is making a genuine effort to bring the crypto space within the ambit of finance. In 2023, the government made it mandatory for all exchanges to gather HYC data and forward it to the Financial Intelligence Unit (FIU). 

The rules pertain to every virtual asset service provider (VASP) running their business in India. Through FIU losing and adhering to the Prevention of Money Laundering Act (PMLA), the country intends to incorporate the crypto space with the current financial mechanism and set up an infrastructure for tracking and regulating purposes. 

Narendra Modi, who has been provided another opportunity to claim the Prime Minister’s chair, has reinducted Nirmal Sitharaman as the finance minister. His is being looked upon with trepidation as she is known to be non-inclined towards cryptocurrencies. On the sunny side, there might be certain changes made in crypto-related policies.