In a landmark move, cryptocurrency giants Binance and KuCoin have secured registration with India’s Financial Intelligence Unit (FIU), marking the first time the country’s anti-money laundering watchdog has approved offshore crypto entities. This decision signifies a significant shift in India’s stance on the cryptocurrency industry, which previously saw a ban imposed on Binance and KuCoin alongside several other international exchanges.
The registration news comes after a period of heightened scrutiny by the Indian government towards offshore crypto exchanges. In December 2023, the FIU issued notices to nine such platforms, including Binance and KuCoin, for non-compliance with anti-money laundering regulations. This action resulted in a subsequent ban and website blocking for these exchanges.
However, both Binance and KuCoin actively sought to address the concerns raised by the FIU. KuCoin reportedly paid a penalty of $41, 000 and demonstrated a commitment to adhering to Indian regulations. Binance is expected to follow suit after a hearing with the FIU to determine its financial penalty.
The registration with the FIU signifies a crucial step towards mainstream adoption of cryptocurrencies in India. It indicates the government’s willingness to work with compliant crypto entities while prioritizing financial security. This development is likely to pave the way for other international exchanges to seek registration and cater to the growing Indian crypto market.
The impact of this decision extends beyond just Binance and KuCoin. It sets a precedent for future registration processes and highlights the importance of anti-money laundering compliance for offshore crypto exchanges seeking access to the Indian market. While the specific details of Binance’s resumption of operations remain to be determined, the registration itself signifies a positive development for the Indian crypto landscape.
