Binance Registers With India’s Financial Intelligence Unit
The world’s largest crypto exchange, Binance, and its rival, KuCoin, have been registered with India’s Financial Intelligence Unit (FIU). This marks the first time that offshore crypto-related entities have been approved by India’s anti-money laundering unit.
Key points:
- Binance and KuCoin are among the first offshore crypto entities to be registered with India’s FIU.
- KuCoin has paid a fine of $41,000 and resumed operations in India.
- Binance’s financial penalty is yet to be determined, pending a hearing with the FIU.
- More than 9 offshore entities, including Huobi, Kraken, and Gate.io, were previously banned by India.
- Binance recently faced a $4.3 million penalty from Canada’s FINTRAC for non-compliance with anti-money laundering regulations.
The registration of Binance and KuCoin with the FIU is a significant milestone for India’s crypto industry. This demonstrates the regulatory authorities’ willingness to engage with and regulate offshore entities operating in the country.
Read more: Kraken Fires Back At SEC, Arguing Agency’s Case Lacks Proper Wording
Binance has yet to resume operations
KuCoin has already paid a penalty of $41,000 to the FIU and has subsequently resumed its operations in India. However, according to CoinDesk, Binance has not yet resumed operations in India. This is because the FIU expects the exchange to pay a penalty after a hearing.
The senior-most official of the FIU stated, “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.”
The registration of these exchanges comes after India had previously banned more than 9 offshore entities. This includes prominent exchanges such as Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.
Also read: Binance Slapped With $4.3 Million Penalty By Canadian Regulator
However, Binance’s registration in India comes amidst regulatory challenges faced by the exchange in other jurisdictions. Recently, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed a substantial administrative monetary penalty of $4.3 million on Binance.
The penalty was for non-compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated regulations.
