May 15, 2024
By Anjali Kochhar
Global cryptocurrency giants Binance and KuCoin have received approval to register with the Financial Intelligence Unit-India (FIU-India), a critical step towards regulatory compliance within the country’s burgeoning digital asset sector. This is a significant development for the cryptocurrency landscape in India.
The move signals a narrowing regulatory gap between crypto firms registered with FIU-India and unregistered offshore entities, bringing clarity and oversight to an industry previously plagued by uncertainty.
Following months of deliberation, Binance, the world’s largest crypto exchange, has embarked on the path to official recognition within India’s regulatory framework. Despite the initial suspension of operations due to non-compliance with local anti-money laundering regulations, Binance’s registration with FIU-IND marks a promising stride towards reinstating its presence in the Indian market.
Vivek Aggarwal, Director of FIU-IND and Additional Secretary of the Department of Revenue, Government of India, affirmed the progress, stating that while Binance’s operations remain suspended pending further compliance proceedings, the exchange has taken the crucial first step towards regulatory alignment by completing its initial registration with FIU-IND.
Meanwhile, KuCoin, Binance’s rival in the global crypto sphere, has already solidified its status as a fully registered and operational entity within India after navigating the regulatory landscape and paying a penalty fee of Rs 34.5 lakh. The registration of both Binance and KuCoin underscores the industry’s commitment to adhering to India’s anti-money laundering regulations and underscores the importance of regulatory compliance for virtual digital asset (VDA) players.
The regulatory strides made by Binance and KuCoin have not gone unnoticed within the Indian crypto community. A recent workshop convened by the Bharat Web3 Association (BWA) in New Delhi saw participation from FIU-IND officials, BWA representatives, and key stakeholders from leading Indian crypto exchanges, including CoinDCX, CoinSwitch, WazirX, and Unocoin.
The workshop served as a platform for dialogue on the evolving regulatory landscape and highlighted the paramount importance that VDA players attribute to compliance with the Prevention of Money Laundering Act (PMLA). With the participation of international exchanges like KuCoin, which became the first such platform to register with FIU-IND, the event underscored the industry’s collective commitment to fostering a transparent and compliant ecosystem for digital asset trading in India.
The crypto industry in India is about to enter a new era of legitimacy and accountability with Binance and KuCoin’s registration with FIU-IND. This will lead to increased investor trust and sustainable growth in the sector as they traverse the regulatory procedures and compliance requirements..
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.