Cryptocurrency giants Binance and Kucoin have officially registered with India’s Financial Intelligence Unit (FIU-IND) as Virtual Asset Service Providers (VASPs), marking a significant development in the regulatory landscape of the cryptocurrency market in India. This approval comes after both platforms were previously banned due to non-compliance with the country’s stringent anti-money laundering regulations.
Binance and Kucoin, two prominent global cryptocurrency exchanges, are now registered with FIU-IND, under the supervision of FIU Director Vivek Aggarwal.
The registration of these exchanges as VASPs allows them to operate legally within India, offering renewed access to their services for Indian users. This move is part of a broader effort by the Indian authorities to bring greater transparency and regulatory oversight to cryptocurrency transactions within the nation.
The confirmation of registration was announced by Vivek Aggarwal on Friday, signaling a new phase of compliance and cooperation between the cryptocurrency exchanges and Indian regulatory bodies.
This development pertains to the operations of Binance and Kucoin within India, where they had faced previous restrictions and penalties for regulatory violations.
The registration follows a period of intense scrutiny and regulatory challenges for both exchanges in India. Binance and Kucoin have worked to address the regulatory concerns, including issues related to anti-money laundering protocols, which previously led to temporary bans and financial penalties.
To comply with Indian regulations, these exchanges have not only registered with the FIU but have also agreed to adhere to strict regulatory requirements, including the implementation of comprehensive transaction monitoring systems and the submission of suspicious transaction reports (STRs). Kucoin has resolved its previous non-compliance issues, resulting in a fine and the lifting of its website ban, while Binance is still finalizing its penalties.
FIU-IND Director Vivek Aggarwal emphasized that while offshore cryptocurrency exchanges do not need to establish separate business entities in India, they must appoint a principal compliance officer registered with the FIU. This officer’s contact details must be accessible to the FIU to facilitate direct interactions.
This regulatory milestone underscores India’s commitment to integrating cryptocurrency trading within its legal and financial systems, providing a framework that ensures both innovation and compliance. Currently, FIU-IND oversees 47 entities involved in cryptocurrency operations, highlighting the growing importance of digital assets in the Indian economy.
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