FIU-India: India has given the green light to crypto exchanges Binance and Kucoin, approving them as Registered Virtual Asset Service Providers, according to a senior official. These exchanges, previously banned in India for violating anti-money laundering regulations, have now been authorized by the country’s Financial Intelligence Unit.
The Financial Intelligence Unit – India (FIU-IND) has granted approval for Binance and Kucoin, offshore crypto exchanges, to function as Virtual Asset Service Providers (VASPs) within India. Vivek Aggarwal, Director of FIU-IND, confirmed this development to reporters, stating:
“Kucoin and Binance have finished their registration process with FIU India. We now have full visibility of necessary transactions, and the process for submitting Suspicious Transaction Reports (STR) will commence shortly.”
Kucoin resolved its past compliance issues, which led to the lifting of the ban on its website and a fine of Rs 35.5 lakh (approximately $43,000). Meanwhile, Binance is still facing penalties after a temporary ban earlier this year due to regulatory breaches. Initially, Binance was expected to return to the Indian crypto market upon paying a $2 million fine.
In December of last year, the Indian government directed the Ministry of Electronics and Information Technology to block access to offshore crypto exchanges considered illegal in the country. Nine platforms, including Binance, Kucoin, Huobi, Kraken, and Bitfinex, were affected by this directive.
Aggarwal clarified that offshore crypto exchanges do not need to establish separate entities in India. However, they must appoint a principal compliance officer registered with FIU-IND, with their details available for interaction. Currently, FIU-IND supervises 47 entities involved in crypto trading or management in India.
