Binance, the preeminent cryptocurrency exchange globally, has completed its registration with the Financial Intelligence Unit of India (FIU), as confirmed by a top official from the FIU last Friday. This move is a part of Binance’s efforts to restart its business activities in India.
Previously, in December, the exchange faced a suspension of its operations in India due to its failure to adhere to the nation’s regulatory requirements. This was a segment of a broader initiative by the financial authority to regulate offshore cryptocurrency exchanges operating unregistered within the country.
In India, entities providing services related to virtual digital assets, such as cryptocurrency exchanges, are mandated to register with the FIU as reporting entities and fulfil the obligations set forth by the nation’s anti-money laundering regulations.
Although Binance has now registered with the FIU, the resumption of its operations is contingent upon the settlement of a fine for its past regulatory breaches. The amount of the fine is still pending determination, as stated by Vivek Aggarwal, the director of the FIU.
In December 2023, the FIU issued show-cause notices to nine offshore cryptocurrency exchanges for their non-compliance with local regulations.
Furthermore, the financial regulator requested the Ministry of Electronics and Information Technology to restrict online access to these exchanges.
Another offshore cryptocurrency exchange, KuCoin, has also completed its registration with the FIU and has recommenced its operations after settling a penalty of INR 3.45 million (approximately $41,313), as informed by Aggarwal.
KuCoin had previously declared its registration in March, although it did not disclose the specifics of the incurred penalty.
As of now, Binance and KuCoin have not provided any immediate responses to inquiries for comments sent via email.