India's financial landscape is witnessing renewed interest from offshore cryptocurrency exchanges eager to re-enter the market, following recent regulatory developments.

According to a report from Business Standard on June 14, the Financial Intelligence Unit (FIU) of India has received petitions from four additional offshore crypto exchanges seeking permission to resume operations within the country. This development comes shortly after global giants like Binance and KuCoin were granted approval by Indian authorities to restart their operations, having previously been banned for non-compliance with anti-money laundering (AML) policies.

KuCoin, after resolving its past issues with a penalty of $34.5 lakh (approximately $41,200), saw the ban on its websites in India lifted. Meanwhile, Binance is currently in the process of settling outstanding liabilities and is expected to pay a $2 million fine before resuming operations.

"We expect them to go live very soon," a senior government official stated, indicating imminent reactivation of these exchanges in the Indian market.

While the identities of the new applicants have not been disclosed, India presently hosts 46 registered crypto companies. The approvals for KuCoin and Binance are set to increase this count to 48, signaling a gradual normalization of crypto exchange operations in the country.

Last year, several prominent exchanges including Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex were banned in India, impacting the local cryptocurrency industry and prompting traders to resort to international platforms.

In a move aimed at regulatory compliance and market integrity, Binance recently ceased permitting cash payments for cryptocurrency transactions among Indian users. This decision aligns with India's regulatory framework, emphasizing adherence to Know Your Customer (KYC) norms and other anti-money laundering measures.

India has been actively working to integrate the cryptocurrency sector into its financial ecosystem. Regulations introduced last year mandate that all Virtual Asset Service Providers (VASPs) operating in India, irrespective of their physical location, comply with FIU registration and adhere to the Prevention of Money Laundering Act (PMLA). These measures are part of India's broader strategy to establish a robust regulatory framework for overseeing and monitoring crypto-related activities.

As offshore exchanges express renewed interest in India's burgeoning crypto market, the regulatory environment continues to evolve, shaping the future landscape of digital asset trading in the country.