Cryptocurrency exchanges Binance and KuCoin have successfully registered with India’s Financial Intelligence Unit as Virtual Asset Service Providers (VASPs), a top official has reportedly confirmed. Both crypto exchanges were previously banned in India due to violations of the country’s anti-money laundering regulations.
Kucoin and Binance Registered With FIU India
The Financial Intelligence Unit – India (FIU-IND) has reportedly approved offshore cryptocurrency exchanges Binance and Kucoin to operate in the country as Virtual Asset Service Providers (VASPs). FIU-IND Director Vivek Aggarwal told reporters on Friday:
So Kucoin and Binance have got registered with FIU India … We are now having a full visibility of transactions that we need and the STR (suspicious transaction report) submission process will start soon.
This development followed Kucoin’s successful resolution of prior non-compliance issues, which led to the imposition of a fine of Rs 35.5 lakh (approximately $43,000) and the lifting of its website ban. Meanwhile, the penalties for Binance are still being calculated following a temporary ban imposed earlier this year for regulatory violations. Previously, Binance was expected to re-enter the Indian crypto market after paying a fine of $2 million.
The Indian government directed the Ministry of Electronics and Information Technology to bar access to offshore cryptocurrency exchanges deemed illegal within the country in December last year. The nine affected crypto platforms included Binance, Kucoin, Huobi, Kraken, and Bitfinex.
Aggarwal explained that offshore cryptocurrency exchanges are not required to establish separate business entities in India. However, “there has to be a principal compliance officer who gets registered with FIU, India, and whose address and details are available to FIU for interacting,” he clarified. Currently, the FIU-IND oversees 47 entities involved in cryptocurrency trading or management in India.
