Following Binance and KuCoin, two more offshore cryptocurrency exchanges could receive the green light from India’s financial watchdog by March 2025.

Sources familiar with the matter told a local media outlet that India’s Financial Intelligence Unit is reviewing registration requests from four off-shore exchanges. While the names of the platforms were not disclosed, the source said two of these entities could be allowed to begin operations by the end of the Financial Year 2025.

Last year, the FIU sent show cause notices to nine foreign cryptocurrency exchanges, namely Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. According to the regulator, these platforms had failed to meet registration requirements and were non-compliant with the nation’s anti-money laundering rules.

Thereafter, Indians were blocked from accessing the websites and mobile applications of affected platforms as part of the crackdown, aligning with India’s Prevention of Money Laundering Act. The block followed a March 2023 mandate from India’s Finance Ministry that required crypto exchanges to register as reporting entities with the FIU.

According to the source, the two exchanges seeking approval would undergo a “thorough review of transaction visibility, suspicious transaction reporting, and other related issues” before being allowed to resume operations. Further, penalties would be imposed based on the scale of their operations before the ban and the extent of their non-compliance.

“Only after complete due diligence will we allow any crypto exchange to operate in India. We are very strict about compliance,” the source added.

KuCoin became the first FIU-compliant foreign exchange after paying a fine of inr 34.5 lakh (roughly $41,000). However, this penalty was modest compared to the $2.25 million Binance had to pay.

Singapore-based Bitget was also in active discussions with the FIU, among other exchanges. At the time of writing, there were 48 registered crypto entities in India, including Binance and KuCoin.

Chainalysis flagged India as one of the fastest-growing crypto economies with the highest adoption rate as of 2023. As such, it’s no surprise that global crypto exchanges are eyeing a return to the booming market, which was estimated to have generated over $1 billion in revenue in 2023.

However, it might not be smooth sailing, as foreign exchanges are also expected to register under India’s Goods and Services Tax regime, which could further increase operating costs. Binance was asked to pay $86 million to clear unpaid GST dues on transaction fees collected from Indian customers before the December ban.