The Financial Intelligence Unit (FIU) of India has
granted Binance and KuCoin registration, months after both cryptocurrency
exchanges were banned for operating illegally, Coindesk reported. While KuCoin
has paid a penalty of $41,000 and resumed its operations, Binance is awaiting a
penalty decision following a hearing with the FIU.
Credibility Boost
Vivek Aggarwal, the Head of FIU-IND, emphasized the
significance of these registrations, stating that they add credibility to the
system. The move underscores India’s efforts to regulate the crypto market
while safeguarding its economy against financial crimes. This approval followed
a period of regulatory scrutiny, during which both exchanges were banned in the
region.
The exact amount of penalty Binance will pay has yet to be
determined, with reports suggesting it could amount to $2 million. Aggarwal
clarified that although Binance is registered, compliance proceedings are
ongoing until the penalty is finalized.
Other sanctioned platforms like Kraken, Gemini, and
Gate.io have reportedly initiated negotiations with the regulator, aiming to comply with
India’s regulations. Meanwhile, OKX and Bitstamp have submitted proposals to exit
the country. Aggarwal reiterated the importance of anti-money laundering and
counter-terrorism financing policies, emphasizing the need for full
visibility of transactions and reports of suspicious activities to be in place.
Negotiations and Compliance
India’s stance on crypto is uncertain, with the
imposition of stiff taxes in 2022 and subsequent market fluctuations leading to
uncertainty among traders. Despite making crypto a priority during its G20
presidency in 2023, India faces criticism for pushing global consensus without
having its own legislation in place. The country has kept a crypto bill on hold
since 2021, indicating that a decision on its position is unlikely before
mid-2025.
Expect ongoing updates as this story evolves.
This article was written by Jared Kirui at www.financemagnates.com.
