India's financial watchdog, the Financial Intelligence Unit (FIU), is witnessing renewed interest from offshore crypto exchanges, with four additional platforms seeking permission to operate in the country. This development comes after Binance and KuCoin were authorized to operate in India again, following approval from the financial regulator.

A New Era for Indian Crypto

The recent approvals have brought the total number of registered crypto entities in India to 46, with the number expected to rise to 48 with the addition of Kucoin and Binance. This growth is a significant step forward for the Indian crypto industry, which faced setbacks last year when several exchanges were banned, including Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.

Binance's Restrictive Measures

Despite its market entry, Binance has recently stopped allowing cash payments for cryptocurrency trades between users in India. This move aims to comply with regulations and improve its reputation in the Indian market, although it restricts a previously offered way to pay for crypto.

Regulatory Framework

India has been working to integrate the crypto sector with its existing financial system. Last year, the government mandated cryptocurrency companies to collect Know Your Customer (KYC) data and register with the FIU. These regulations apply to all Virtual Asset Service Providers (VASPs) operating in India, regardless of their physical location.

Crypto Community's Concerns

The reappointment of Finance Minister Nirmala Sitharaman, who holds the view that cryptocurrencies cannot function as actual currencies, has drawn mixed reactions from the crypto community. However, she has called for international cooperation in crypto policies, which could lead to a more collaborative approach to regulating the industry.