Binance, the world’s leading cryptocurrency exchange by volume, has taken significant steps towards resuming its operations in India by registering with the Indian Financial Intelligence Unit (FIU). This move comes after both Binance and its competitor KuCoin, along with other platforms, were banned by the Indian government in December 2023.
Efforts to Meet Regulatory Requirements
The registration with the FIU marks a pivotal development, as it is the first time offshore cryptocurrency entities have gained approval from India’s anti-money laundering unit. KuCoin, which also faced the December ban, has registered with the FIU and resolved part of its compliance issues by paying a fine of $41,000. However, the exact amount Binance has paid or will need to pay remains undisclosed.
Pending Compliance and Operational Challenges
Despite obtaining FIU registration, Binance’s path to full operational status in India includes further bureaucratic hurdles. The exchange is currently engaged in a legal hearing, pending which the final penalty for non-compliance will be determined. This ongoing process must conclude before Binance can restart its services to the vast Indian market.
Also Read: Binance Refutes Allegations of Market Manipulation
Broader Implications for Crypto Regulation
The situation with Binance and KuCoin highlights broader challenges faced by international crypto platforms operating in India. Last year, the FIU issued notices to several prominent crypto platforms for failing to adhere to the country’s anti-money laundering (AML) and Counter Financing of Terrorism (CFT) regulations. Compliance with these regulations is crucial for these platforms to cater to the Indian market, which is among the largest globally in terms of crypto users.
The potential reentry of Binance into the Indian market could signal a significant positive shift for the company, providing a boost given India’s substantial crypto user base. Nonetheless, the exact timeline for when Binance will resume operations remains dependent on the resolution of its compliance proceedings.
