- After being banned for running unapproved operations in the past, Binance and KuCoin have officially registered with the FIU in India.
- The resolution of compliance issues and a pending penalty judgment will determine Binance’s future in India.
The Financial Intelligence Unit (FIU) of India has at last approved two major cryptocurrency exchanges: Binance and KuCoin. Following bans for previously operating without permission, this approval represents an enormous change, which was echoed by India crypto influencer Keyur Rohit.
🚨 BREAKING: 🇮🇳 #Binance have officially registered with India's Financial Intelligence Unit 🔥 pic.twitter.com/Mco504chNI
— Keyur Rohit (@CryptoKingKeyur) May 10, 2024
Overcoming Legal Obstacles
Following a $41,000 fine with the FIU, KuCoin quickly started up again all throughout the country. Still mired in compliance protocols, nevertheless, is Binance. The exchange is navigating through regulatory processes and is waiting for a final ruling on a pending penalty after a hearing.
Vivek Aggarwal, the head of FIU-IND, confirmed the registrations on these platforms. He did point out, meanwhile, that because of outstanding penalty-related difficulties, Binance’s registration procedure is still ongoing.
This move follows a less severe defeat for the Bitcoin behemoth earlier, when Changpeng Zhao, the CEO, was given a four-month jail sentence, far less than the 36-month penalty that prosecutors were requesting, in line with what ETHNews previously disclosed.
According to previous ETHNews reports, Binance has converted a sum of about $1 billion from its Secure Asset Fund for Users (SAFU) to Circle’s USDC, complicating its already turbulent course.
Considering the regulatory upheavals, this was probably a calculated measure to improve the security and stability of the assets under its stewardship.
The Crypto Clampdown in India
Binance and KuCoin’s FIU permission marks a tightening of India’s cryptocurrency laws. In order to highlight its dedication to implementing strong anti-money laundering (AML) and counter-financing of terrorism (CFT) frameworks.
Also, the nation has previously prohibited over nine offshore companies, including well-known brands like HTX, Kraken, and Bitstamp.
Other approved platforms like Kraken, Gemini, and Gate.io are currently negotiating with regulatory bodies, which is indicative of a larger trend of regulatory monitoring in the Indian Bitcoin industry.
In the meantime, in reaction to the difficult regulatory climate, exchanges like OKX and Bitstamp have made the decision to completely leave the Indian market and submit their exit plans.
Entering the Indian market again offers Binance a lot of possibilities. One of the biggest crypto markets in the world is acknowledged to be India, where a significant user base enthusiastically engages in trades of virtual currencies.
But if Binance can work out the compliance problems and pay the FIU’s outstanding fine, it will determine how long it can survive in India.