Indian Crypto Credibility Boosted as Binance and KuCoin Win Registration Amid Regulatory Shift

May 11, 2024

The cryptocurrency landscape in India underwent a major shift, with Binance and KuCoin securing registration with the country’s Financial Intelligence Unit (FIU-IND), marking a pivotal moment following their ban of alleged illegal operations last year. The move comes as part of a broader regulatory shift and highlights a growing trend toward the legitimization of offshore crypto exchanges within India’s financial framework.

Both Binance, the world’s largest cryptocurrency exchange, and KuCoin, after paying a penalty of $41,000, have taken strides toward compliance by obtaining registration with the FIU-IND. The FIU-IND’s engagement with 48 registered crypto entities signifies a step toward fostering transparency and accountability within the industry.

Vivek Aggarwal, director of FIU-IND, emphasized that these registrations signify more than just compliance—they represent a commitment to safeguarding the Indian economy against financial crime. This move is not merely about legality; it’s about enhancing the credibility of the crypto ecosystem in India, which has faced ambiguity and challenges over the past years.

India’s stance on cryptocurrencies has indeed been fluid, with recent taxation measures and market shifts prompting traders to seek international exchanges. However, the ban on offshore entities saw a resurgence of activity on local exchanges, demonstrating the appetite for crypto trading despite regulatory uncertainties.

Looking ahead, the crypto community in India anticipates further clarity on the country’s broader crypto policy, especially with ongoing discussions within the G20 framework. The FIU-IND’s move to engage with the press and release a compliance-focused report reflects a commitment to fostering innovation while mitigating money laundering risks. Despite regulatory bounds and high tax rates, a growing number of young Indians are embracing crypto investments as a cornerstone of their retirement plans, showcasing a profound trust in the potential of digital assets to secure their financial futures.

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