Binance and KuCoin Secure Registration Approval from Indias AntiMoney Laundering Regulator

Binance, the world's largest cryptocurrency exchange, along with competitor KuCoin, became the first offshore crypto-related entities to be approved by India's anti-money laundering unit, months after being banned for "operating illegally."

According to a report by CoinDesk, a senior official of the India FIU, which is part of the country's Finance Ministry, stated that Binance and Kucoin have registered with the country's Anti-Money Laundering Unit.

Both exchanges secured registration approval with the Indian Financial Intelligence Unit (FIU) after the country with a population of more than 1.4 billion banned the platforms along with Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex in December 2023.

KuCoin has resumed operations after becoming the first cryptocurrency company to pay a $41,000 fine. Due to the expectation that it will have to pay a fine following an FIU hearing, Binance has not commenced operations. According to The Economic Times, which cited people with knowledge of the situation, Binance would agree to pay a $2 million fine.

Head of FIU Vivek Aggarwal stated, "Binance has been registered; however, the compliance proceedings are not yet completed as I need to determine the penalty amount, and that hearing is still ongoing."

I told a group of financial journalists that the approval signifies a change in the country's perception of cryptocurrencies. In order to review compliance guidelines on money laundering laws for virtual digital asset service providers, the unit will form a working group with the industry, he stated.

Aggarwal said, "I should have full visibility of those transactions whenever I want, and I should also get reports of suspicious transactions." This is the main objective of the anti-money laundering and counterterrorism framework, or AML/CFT. "We have the compliance in place to that extent."

The report further said other banned crypto platforms, including Kraken, Gemini, and Gate.io, have started negotiations with the regulator, while OKX and Bitstamp have submitted plans to leave the country.

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