This milestone makes them the first offshore crypto-related entities to gain approval from India’s anti-money laundering authority.
Also, the registration comes months after both entities, along with several others, were banned for allegedly “operating illegally” in the country.
Binance and Others Poised to Transform India’s Crypto Regulations
The registration process was not without its hurdles. KuCoin paid a $41,000 penalty in a compliance settlement, while Binance’s fine is pending FIU hearing results. So, the approvals mark a pivotal moment for both exchanges, demonstrating their commitment to adhering to local regulations. They are determined to operate within the legal frameworks of the markets they serve.
The FIU-IND, operating under India’s Finance Ministry, plays a crucial role in combating money laundering and terrorism financing. By registering with FIU-IND, Binance and KuCoin have met India’s stringent regulatory standards. This recognition paves the way for their legitimate operation in one of the world’s most populous markets.
Crypto exchanges @Binance and @KuCoinCom have secured registration at India's Financial Intelligence Unit, by @amitoj.https://t.co/iQF1aZl7wr
— CoinDesk (@CoinDesk) May 10, 2024
Also, the backstory to this development includes a broader crackdown by Indian regulators at the end of the previous year. Over nine major exchanges, including Huobi, Kraken, and Bitfinex, were banned. The bans targeted entities operating without proper authorization.
The FIU-IND’s approval of Binance and KuCoin is significant given their global market influence. So, Binance and KuCoin aim to expand in India, ensuring compliance with local regulations.
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