- Binance and KuCoin are now registered with India’s FIU after previous bans for illegal operations.
- India’s registration of these crypto firms marks a shift towards legitimizing the sector in the country.
- The FIU plans to develop anti-money laundering compliance standards with the crypto industry.
Binance, the largest cryptocurrency exchange globally, along with its competitor KuCoin, have become the initial offshore cryptocurrency entities to receive approval from India’s anti-money laundering agency. This development follows their prior prohibition for “illegal operations.”
Both companies are now registered with India’s Financial Intelligence Unit (FIU-IND), according to the unit’s top official, under the Finance Ministry. They were part of a larger group of over nine offshore firms, including Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex, that were banned towards the end of the previous year.
The registration is seen as a pivotal moment for the legitimacy of cryptocurrencies within the country, according to Vivek Aggarwal, who leads FIU-IND. During a conference with several financial reporters, Aggarwal announced plans to establish a working group with the sector to refine compliance standards concerning anti-money laundering regulations for providers of digital virtual assets.
“It is parliament and government as a whole safeguard the Indian economy. If any business is ring-fenced from being abused for financial crime then automatically it has, if not legitimacy, at least little more credibility to the system.”
Vivek Aggarwal
KuCoin has resumed its operations after paying a fine of $41,000, becoming the first cryptocurrency entity to do so. In contrast, Binance has yet to restart its operations as it anticipates a penalty following a hearing with the Financial Intelligence Unit (FIU). According to The Economic Times, which cited sources close to the matter, Binance is expected to agree to a $2 million fine.
“Although Binance is registered, the compliance process is incomplete as the penalty amount is yet to be determined by me, and that hearing is still ongoing,” said Vivek Aggarwal, the head of FIU-IND.
Other sanctioned platforms such as Kraken, Gemini, and Gate.io have initiated negotiations with the regulator. Meanwhile, OKX and Bitstamp have presented plans to withdraw from the Indian market.
India now hosts up to 48 crypto entities recognized as reporting bodies under the nation’s Prevention of Money Laundering Act, according to Aggarwal. A meeting held on Friday marked the first official communication by the FIU to the media concerning cryptocurrency regulations, following a comprehensive meeting between FIU officials and representatives from all 48 registered entities.
