Binance Registers with Indian Financial Intelligence Unit

Discover the latest developments in the Binance saga as the world's largest cryptocurrency exchange registers with the Indian Financial Intelligence Unit.

May 11, 2024 - 13:15
May 11, 2024 - 13:13
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Binance Registers with Indian Financial Intelligence Unit
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Binance, the world’s largest cryptocurrency exchange by volume, has officially registered with the Indian Financial Intelligence Unit (FIU) following the platform’s ban in December 2023, along with over nine others. Rival crypto exchange KuCoin has also completed registration with the FIU, accompanied by a $41,000 fine. KuCoin was part of the platforms banned by the Indian government last year. This development signifies the first approval of offshore crypto entities by India’s anti-money laundering unit. Although KuCoin paid a $41,000 fine, the amount paid by Binance remains undisclosed.

The question remains: when will Binance resume operations in India? Despite registering with the Financial Intelligence Unit, the exchange awaits a final decision from ongoing compliance hearings. Additionally, before resuming services in the nation, Binance anticipates facing a substantial fine. As per a statement, "Binance is registered but the compliance proceedings are not completed. The amount of penalty has to be decided by me and that hearing is still going on."

Last year, 'Binance, KuCoin, and other prominent crypto platforms received notices from the Financial Intelligence Unit, alleging non-compliance with anti-money laundering laws. The FIU emphasized that several offshore entities, despite serving a significant number of Indian users, had not registered and adhered to the Anti Money Laundering (AML) and Counter Financing of Terrorism (CFT) framework.

Nevertheless, Binance’s potential reentry into the Indian market represents a positive step for the company. India ranks among the world’s largest crypto markets, boasting a substantial user base.