…A Big Win for Crypto Regulation
India’s Financial Intelligence Unit (FIU) has registered the world’s largest crypto exchange, Binance, and its arch-rival, KuCoin, marking a historic moment for foreign-based cryptocurrency entities and exchanges in the country’s regulatory landscape.
Summary:
- The registration of Binance and KuCoin contradicts India’s precious stance as they had previously banned more than 9 offshore entities, including Huobi, Kraken, and Gate.io.
- Binance and KuCoin are among the foremost foreign crypto entities to secure registration with India’s FIU, which brings some fresh air around the country’s approach to regulating the crypto industry.
- Binance has recently been swamped with waves of regulatory challenges elsewhere, facing a $4.3 million penalty from Canada’s FINTRAC for a breach in compliance with anti-money laundering regulations.
- KuCoin was made to pay a fine of $41,000 in order to resume its operations in India, which is more of a commitment fee to comply with local regulations.
Binance’s registration is not complete yet as there is still one more hearing session with the FIU, and the commitment fee is yet to be determined. However, this already has been praised as a big win in the regulatory engagement for crypto exchanges operating in India.
The registration of Binance and KuCoin with India’s FIU represents a significant milestone for the country’s crypto industry, highlighting regulatory authorities’ willingness to engage with and regulate offshore entities operating within its borders. This has also been identified to spur the growing recognition of cryptocurrency as a legal asset class and the need for clear regulatory structures to ensure its responsible use and integration into the global financial system. As India continues to make conscious efforts to erect a definite structure around the evolving landscape of digital currencies, the registration of Binance and KuCoin could be seen as a defining point for future regulatory engagement and cooperation within the crypto industry.
