Binance and KuCoin, prominent players in the cryptocurrency exchange arena, have achieved registration with India’s Financial Intelligence Unit (FIU-IND), a significant development following a ban for alleged illegal operations earlier.

After months of legal battles, Binance and KuCoin have emerged as the first offshore crypto entities to receive approval from India’s anti-money laundering unit. The FIU-IND, under the nation’s Finance Ministry, confirmed their registration, marking a pivotal moment for the cryptocurrency industry in India.

Penalties and Compliance Proceedings

KuCoin swiftly resumed operations after paying a $41,000 penalty. However, Binance’s situation remains pending, awaiting a penalty determination post-hearing with the FIU. Vivek Aggarwal, the head of FIU-IND, revealed that while Binance is registered, compliance proceedings are ongoing until the penalty amount is finalized.

Negotiations and Exit Plans

Other offshore platforms, including Kraken, Gemini, and Gate.io, have initiated negotiations with regulators. OKX and Bitstamp have opted to exit the country, submitting plans for their departure. The regulatory landscape remains complex, with unresolved issues surrounding compliance and registration for offshore entities.

Ongoing Compliance Requirements

Entities that failed to secure registration with FIU-IND and received show cause notices in December face continued blockades, despite engaging in talks with the regulatory body. The outcome underscores the stringent regulatory environment surrounding cryptocurrency operations in India.