Binance, the world’s largest cryptocurrency exchange, has taken a significant step toward resuming operations in India by registering with the Financial Intelligence Unit (FIU) of India, a senior FIU official has confirmed. The registration comes after Binance’s operations in India were suspended in December for failing to comply with local regulations, amid a wider crackdown by the financial watchdog on foreign cryptocurrency exchanges operating without proper registration.
To operate legally, virtual digital asset service providers, such as cryptocurrency exchanges, must register with the FIU and comply with their country’s anti-money laundering regulations. According to FIU Director Vivek Aggarwal, Binance has now registered but must resolve pending penalties for previous non-compliance before resuming operations, with the exact fines yet to be finalized.
In addition to Binance, the FIU issued show-cause notices for similar compliance failures to nine other foreign cryptocurrency exchanges in December 2023. FIU also requested that the Ministry of Electronics and Information Technology block online access to these platforms.
Another cryptocurrency exchange, KuCoin, went through this process successfully, registering with the FIU and resuming operations after being fined 3.45 million rupees (about $41,313). KuCoin opened its registration last March but initially did not disclose details of the fine.
At this time, representatives from Binance and KuCoin have not provided any comment on these developments.
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