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India Grants Registration to Binance and KuCoin Crypto Platforms

Jonathan Wong

Jonathan Wong

10 May 2024

India's anti-money laundering regulator has granted registration to cryptocurrency platforms Binance and KuCoin, marking a significant shift in the credibility of cryptocurrency in the country. The two offshore organizations became the first related to cryptocurrency to be certified in India, following a period of being prohibited for 'operating illegally.' The move is expected to provide a little bit more credibility to the cryptocurrency system as a whole, according to the regulator.

Despite undergoing compliance proceedings, including a penalty payment of $41,000 by KuCoin, the largest cryptocurrency exchange in the world, Binance's financial penalty has yet to be established. Meanwhile, other offshore entities that were previously banned, such as Huobi, Kraken, Gate.io, and others, have initiated negotiations with the regulatory body, indicating a position of ambiguity for the cryptocurrency sector in India.

India's stance on cryptocurrency remains uncertain, with the government imposing stringent crypto taxes in 2022, leading traders to switch to international exchanges. The country has made it a goal for its presidency of the G20 in 2023 to reach a worldwide consensus on crypto policy. Additionally, India has indicated that it will make a decision on its cryptocurrency regulations in the next few months, following the presentation of a report titled 'Virtual Digital Asset Service Providers: Road to Effective Compliance under PMLA.'

The regulatory framework requires offshore firms to register with the FIU, with the necessity of a principal compliance officer. The primary objective of the anti-money laundering and counter-terrorism framework is to have full visibility of transactions and reports of suspicious activities. As India continues to navigate the complexities of crypto regulations, the industry and regulatory bodies work towards effective compliance and protection of the financial system.