KuCoin has already paid a $41,000 fine and resumed operations in India, but Binance is yet to complete its compliance process.
At the end of last year, the Indian government granted access to nine foreign cryptocurrency exchanges, including Binance Holdings Ltd, KuCoin, Huobi, and Kraken, through the Financial Intelligence Unit of India (FIU IND). Blocked. However, the Indian government has now started the process of returning blocked foreign cryptocurrency exchanges to register.
Last Friday, FIU IND announced that Binance and KuCoin are now registered as Virtual Digital Asset Service Providers (VDASPs) in the country. As a result, two competing cryptocurrency exchanges are now competing for the Indian cryptocurrency market.
However, Binance has not yet completed its compliance procedures, resulting in unpaid fines. As Coinspeaker previously revealed, Binance is willing to pay a fine of up to $2 million to the Indian government to obtain permission to operate.
“Binance is registered, but the compliance process is not complete as I have to determine the amount of the penalty and the hearing is still ongoing,” said Vivek Aggarwal, head of FIU.
On the other hand, KuCoin resumed operations in India after paying a fine of about $41,000 to the Indian government. The Indian government is also reviewing the cases of other overseas cryptocurrency exchanges led by Kraken, Gemini, and Gate.io.
Meanwhile, Bitstamp and OKX cryptocurrency exchanges have submitted plans to exit the Indian market.
Direct impact of Binance and KuCoin’s re-entry into the Indian market
India is one of the most coveted cryptocurrency markets in the world as it has a large population already invested in digital assets. With the Indian government already enacting strict and clear cryptocurrency regulations, more overseas web3 companies are focusing on entering the Indian market.
The re-entry of Binance and KuCoin into the Indian market will pave a clear path for other foreign web3 companies to enter the Indian market. The announcement from the Indian regulator indicates that the government is no longer hostile to the cryptocurrency industry as previously perceived.
Moreover, the Reserve Bank of India is not as vocal about the cryptocurrency industry as it was a few years ago.
Binance and KuCoin’s entry into the Indian market will have a major impact on their respective native coins. For Binance, the adoption of BNB in the Indian market will further boost its bullish outlook.
According to the latest market data, BNB price hovered around $595 on Friday and is up 5.3% over the past week. With a fully diluted value of around $91 billion, the large-cap altcoin is on the verge of hitting an all-time high soon if the bullish momentum holds.
On the other hand, KuCoin’s native coin, KCS, rose more than 6.6% last week and was trading at around $10.5 on Friday.
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