- Binance and KuCoin have received FIU-IND approval, marking a milestone in Indian crypto regulation.
- KuCoin pays $41,000 fine as Binance awaits penalty determination amid compliance proceedings.
- The return of exchanges in India indicates the growing acceptance of cryptocurrencies in India’s regulatory framework.
In a significant development for the cryptocurrency industry in India, two major exchanges, Binance And KuCoinhas received registration approval from the Financial Intelligence Unit of India (FIU-IND), marking an important moment in their journey towards regulatory compliance in the country.
This comes after months of negotiations and challenges following the ban on two exchanges for alleged illegal operations.
Binance and KuCoin to re-enter India after ban
The path to registration was fraught with hurdles, as both Binance and KuCoin, along with several other offshore entities, faced a ban in December last year for non-compliance with Indian regulations.
The URLs and mobile applications associated with these exchanges were blocked in January 2024 due to a ban imposed by the Indian Finance Ministry. However, despite these setbacks, Binance and KuCoin emerged as the first offshore crypto-related entities to secure registration. FIU-IND.
KuCoin took proactive action by paying a $41,000 fine, which allowed it to quickly resume operations in India. On the other hand, Binance’s compliance proceedings are still ongoing, with the exact penalty yet to be determined after the hearing with FIU-IND. Reports suggest that Binance could face fines of up to $2 million for non-compliance, highlighting the seriousness of regulatory violations in the Indian crypto market.
Has India’s perception of crypto changed?
The approval of Binance and KuCoin marks a change in the perception of crypto exchanges in India and adds credibility to the regulatory framework governing the industry.
FIU-IND chief Vivek Aggarwal stressed the importance of these registrations in protecting the Indian economy against financial crimes. He said that while the industry awaits parliamentary and government validation, registered entities naturally have a certain degree of credibility within the system.
India’s position on crypto has been somewhat unclear, with stringent taxes imposed and periodic crackdowns on offshore exchanges. However, the country’s push for a global consensus on crypto regulation within the G20 framework reflects a proactive approach to tackling regulatory challenges at the international level.
However, despite the challenges, India’s crypto industry is growing, with efforts underway to foster a regulatory environment that balances innovation with financial security. The unveiling of the report titled “Virtual Digital Asset Service Providers: Road to Effective Compliance under PMLA” by Bharat Web3 Association reflects the commitment to raise compliance standards in the crypto sector.
Additionally, compliance efforts of crypto exchanges with Indian regulations have intensified, with platforms such as Kraken, Gemini, and Gate.io is beginning talks with regulators to resolve compliance issues. However, some exchanges, such as okex And Bitstamp has opted to exit the Indian market altogether in response to regulatory pressures.
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