Binance and KuCoin Register with Indian Financial Intelligence Unit After Ban: What’s Next for Crypto Exchanges in India?

Binance, the world’s largest cryptocurrency exchange by volume, has made a significant move by registering with the Indian Financial Intelligence Unit (FIU) after being banned in the region along with over nine other platforms in December 2023. This development comes as a surprise, especially since rival crypto exchange KuCoin has also registered with the FIU, paying a fine of $41,000. KuCoin was also among the platforms banned by the Indian government last year.

The news of Binance obtaining registration with India’s Financial Intelligence Unit was shared on social media by Watcher.Guru on May 10, 2024. This marks the first time offshore crypto entities have been approved by India’s anti-money laundering unit. While KuCoin has already paid its fine, the amount paid by Binance remains unclear at this time.

Despite obtaining registration with the FIU, Binance still awaits a verdict from its ongoing hearing. It is expected that the world’s largest exchange will face a hefty fine before it can resume operations in India. The compliance proceedings are still ongoing, and the amount of penalty has yet to be decided.

Last year, Binance, KuCoin, and other prominent crypto platforms received notices from the Financial Intelligence Unit for not following anti-money laundering laws. The FIU highlighted that several offshore entities catering to Indian users were not registered and were not complying with the Anti Money Laundering (AML) and Counter Financing of Terrorism (CFT) framework.

The potential reentry of Binance into the Indian market is seen as a positive development for the company. India is one of the largest crypto markets in the world, with a significant number of crypto users. The move to register with the FIU shows Binance’s commitment to complying with regulations and operating within the legal framework of the country.

As the hearing continues and the fine amount is determined, the crypto community eagerly awaits Binance’s return to the Indian market and the resumption of its services in the nation. This development could have a significant impact on the crypto industry in India and pave the way for other exchanges to follow suit in complying with regulations.