Binance, KuCoin Crypto Exchanges Receive FIU Approval in India

Despite the crypto regulatory ban in India, Binance and KuCoin exchanges have obtained approval from India’s Financial Intelligence Unit (FIU).

The FIU of India’s authorization of Binance and KuCoin represents a turning point in the regulatory landscape following a period of regulatory ambiguity and prior prohibitions on offshore cryptocurrency entities. 

This action represents a pivotal stride in achieving legitimacy and adherence to regulations in the Indian market. It is worth mentioning that KuCoin, in a sincere endeavor to comply with regulatory procedures, has expeditiously remitted a substantial fine of $41,000, thus facilitating the restoration of its activities within the jurisdiction. Nevertheless, Binance has encountered a minor obstacle in its progress. 

Despite the rigorous regulatory examination they have encountered, and the list of offshore entities blocked for purportedly illicit activities, Binance and KuCoin have recently distinguished themselves as the initial offshore cryptocurrency-related entities to obtain authorization from India’s anti-money laundering unit. 

This advancement signifies their dedication to adherence to regulations and compliance, thus initiating a period of legitimacy and acceptability in India’s cryptocurrency sector. 

Notably, Huobi, Kraken, and Bitfinex were among the prominent exchanges subject to the suspension at the end of the previous year. Due to its timely compliance with regulatory requirements and payment of the fine, KuCoin has resumed operations without delay. 

In the interim, Binance’s continuous interaction with the FIU, which encompasses the settlement of its penalty amount after the hearing, underscores the exchange’s commitment to regulatory openness and collaboration as it maneuvers through the dynamic regulatory environment in India. 

India’s Regulatory Landscape

The dynamic regulatory environment in India has prompted cryptocurrency platforms to adopt proactive approaches and strategic maneuvers to ensure compliance and gain entry into the market. 

In addition to Kraken, Gemini, and Gate.io, platforms such as KuCoin and Kraken have begun discussions with Indian regulators, demonstrating a coordinated endeavor to achieve regulatory conformity and gain access to the Indian market. 

Nevertheless, offshore entities that still need to obtain registration with the FIU continue to face obstacles, as their services are still obstructed while regulatory approval is received. 

In light of these advancements, partnerships between international payment solutions providers and cryptocurrency exchanges have surfaced as a crucial tactic to streamline cryptocurrency transactions and increase Indian users’ access to the market. 

Bitget, a prominent cryptocurrency exchange, and Alchemy Pay, a leading payment solutions provider, work together to illustrate this trend. 

Using Alchemy Pay’s On-Ramp integration, Bitget users can now effortlessly exchange the Indian Rupee (INR) for cryptocurrencies. This achievement represents a noteworthy stride connecting conventional financial systems with India’s rapidly expanding cryptocurrency sector.