India’s Financial Intelligence Unit (FIU) has given approval to a virtual currency exchange Binance and Kucoin According to , it will operate as a virtual asset service provider (VASP) in the country. economic times.
Vivek Agarwal
FIU-IND Director Vivek Aggarwal confirmed the approval at a press conference. Mr. Agarwal emphasized that this registration will increase transparency in the operations of these platforms and facilitate early initiation of the Suspicious Transaction Report (STR) filing process.
Kucoin had earlier faced a ban due to non-compliance issues but settled its dues by paying a penalty of Rs 35.5 million. Sanctions on the business have since been lifted.
Meanwhile, the world’s largest cryptocurrency exchange, Binance, which also faced a temporary ban in January, is in the process of resolving its debts, which are expected to be around US$2 million, although the exact amount is yet to be determined. Not confirmed by FIU.
The FIU does not require offshore entities to set up a separate entity in India. However, a Chief Compliance Officer must be appointed in the country to be the main point of contact with the FIU.
The move follows the ban in January of nine offshore crypto platforms, including Binance and KuCoin, for failing to comply with FIU and anti-money laundering guidelines.
Some of these, such as Bitstamp and OKX, have ceased operations in India, while others, such as Gate.io and Kraken, are still negotiating with the FIU.
Currently, FIU supervises 47 registered entities involved in trading and handling of crypto assets in India.
Agarwal further said that while the legality of crypto trading in India depends on licensing, registration with the FIU primarily focuses on protection from financial crimes.
FIU, in collaboration with industry stakeholders, will set up a working group to develop self-regulatory guidelines to foster the growth of virtual digital assets (VDA) business in India, drawing on best practices from global regulators. is.
