Binance, the world’s largest cryptocurrency exchange, has registered with India’s Financial Intelligence Unit (FIU), according to a senior FIU official. The exchange was banned from operating in India in December due to non-compliance with local regulations as part of the financial watchdog’s crackdown on offshore crypto exchanges. To resume operations in the country, Binance needs to pay a penalty for its previous non-compliances. The specific amount of the penalty is yet to be determined. KuCoin, another offshore crypto exchange, has also registered with the FIU and has paid a fine of 3.45 million rupees ($41,313) to resume operations.
India requires virtual digital asset service providers, such as cryptocurrency exchanges, to be registered with the FIU and comply with the country’s anti-money laundering rules. The FIU had issued show cause notices to nine offshore cryptocurrency exchanges in December 2023 for non-compliance. Additionally, the financial watchdog asked the Ministry of Electronics and Information Technology to block online access to these exchanges.
Both Binance and KuCoin have not responded immediately to email requests for comment.
Binance’s registration with the FIU is seen as a positive step towards resuming operations in India, one of the largest cryptocurrency markets. However, the exchange still needs to address previous non-compliance issues and pay the penalty before it can fully operate in the country.
KuCoin’s registration and resumption of operations after paying a fine indicate its commitment to comply with Indian regulations. The exchange had announced its registration in March but did not disclose the details of the penalty it paid. The FIU’s approval allows KuCoin to provide its services to Indian customers once again.
The move to register with the FIU showcases the willingness of both exchanges to navigate the regulatory landscape and regain access to the Indian market. It also highlights the importance of compliance with anti-money laundering rules and regulations, as governments around the world tighten oversight on crypto exchanges and digital asset service providers.
