Binance and KuCoin, two of the world’s largest cryptocurrency exchanges, have officially registered with India’s Financial Intelligence Unit (FIU). This marks the first instance where offshore crypto entities have gained approval from the country’s anti-money laundering unit, a move seen as a milestone in regulatory compliance.
KuCoin has already paid a fine of $41,000 as part of the registration process. Meanwhile, Binance is awaiting a final decision on its financial penalty, pending a hearing with the FIU. This development follows a turbulent period where more than nine offshore crypto exchanges, including Huobi, Kraken, and Bitfinex, were banned by India due to non-compliance with local regulations.
Earlier this year, KuCoin took proactive steps by registering with FIU-India in March, swiftly aligning itself with the country’s stringent anti-money laundering norms. This action positioned KuCoin as one of the first foreign exchanges to comply fully with Indian regulations.
In stark contrast, Binance has yet to resume operations in India as it navigates through compliance procedures. According to a senior official in the FIU, “Binance is registered but the compliance proceedings are not completed because the amount of penalty has to be decided by me and that hearing is still going on.”
KuCoin’s compliance has also extended beyond registration. The exchange initiated to establish a localized team in India, seeking banking partnerships for payment solutions, and investing in user education and support for blockchain and Web3 projects.
Johnny Lyu, CEO of KuCoin, reflected on the industry’s evolution, noting,
The biggest change is going from disorder to order… We are starting to see different actions being taken across the entire industry.
This regulatory advancement comes at a time when the global crypto industry is undergoing substantial changes. Since the collapse of FTX, regulators worldwide have intensified scrutiny of the crypto sector. The global community is exploring a common regulatory framework for cryptocurrencies, a move that Lyu finds promising yet challenging due to the diverse financial systems across countries.
