Binance and Kucoin, two prominent cryptocurrency exchanges, have successfully registered with India’s Financial Intelligence Unit (FIU) as Virtual Asset Service Providers (VASPs), according to a top official. Previously banned in India for violating anti-money laundering regulations, both exchanges have now been given the green light to operate in the country. The FIU-IND Director, Vivek Aggarwal, confirmed the news, stating, “So Kucoin and Binance have got registered with FIU India… We are now having a full visibility of transactions that we need and the STR (suspicious transaction report) submission process will start soon.”
Kucoin’s registration follows the resolution of non-compliance issues, resulting in a fine of Rs 35.5 lakh (approximately $43,000) and the lifting of its website ban. Binance, on the other hand, is still facing penalties after a temporary ban earlier this year for regulatory violations. Initially, Binance was expected to re-enter the Indian crypto market after paying a $2 million fine.
In December of last year, the Indian government instructed the Ministry of Electronics and Information Technology to block access to offshore cryptocurrency exchanges considered illegal within the country. This included Binance, Kucoin, Huobi, Kraken, and Bitfinex, among others.
Aggarwal clarified that offshore cryptocurrency exchanges are not required to establish separate business entities in India but must have a principal compliance officer registered with the FIU-IND, with their address and details available for interaction. Currently, the FIU-IND oversees 47 entities involved in cryptocurrency trading or management in India.
What are your thoughts on the approval of Binance and Kucoin by the Indian FIU to operate in the country? Let us know in the comments section below.
