Binance and KuCoin achieve registration with anti-laundering regulator in India

A few months after being banned for “operating illegally” in India, Binance and KuCoin have now become the first offshore cryptocurrency entities to obtain registration for operation in the country, granted by the anti-money laundering unit, according to information from the Coindesk, on May 10. The two exchanges were registered with the country’s Financial Intelligence Unit (FIU-IND).

Both platforms were on the list that includes more than 9 offshore entities banned in India, they are: Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex. In the report, Vivek Aggarwal, director of FIU-IND, highlighted the creation of a working group to review compliance guidelines that deal with money laundering laws aimed at virtual digital asset service providers.

“It is parliament and the government as a whole” that need to give legitimacy to the industry, according to the director. The records are intended to act to “safeguard the Indian economy. If any company is protected against abuse due to financial crimes, then it will automatically have, if not legitimacy, at least a little more credibility for the system”, added Aggarwal.

According to the publication, the KuCoin exchange paid a fine of US$41,000 and resumed its operations. Binance has not yet been able to resume operations as it is estimated that the platform will face a fine after a hearing with the FIU. “Binance is registered, but compliance procedures have not been completed because the penalty amount must be decided by me and the hearing is still ongoing,” explained Vivek Aggarwal.

It is worth remembering that, at the beginning of the year, Binance, one of the largest cryptocurrency exchange platforms in the world, adopted an innovative approach to circumvent restrictions in India. Faced with an intensified regulatory crackdown, Binance has reportedly created alternative URLs to allow Indian customers to access the platform without the need for a VPN.

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