Crypto exchange giants Binance and Kucoin have won approval from Indian authorities to operate as registered virtual asset service providers. The decision marks a turning point in India’s approach to the crypto industry.
India clears the way for Binance and Kucoin, a step towards crypto legitimacy?
Binance, the world’s largest crypto exchange platform, and its competitor Kucoin have succeeded in register with the Financial Intelligence Unit of India (FIU-IND) as providers of virtual asset services (VASP). This approval comes just a few months after the two platforms were banned for operating illegally in the country in breach of anti-money laundering regulations.
Vivek Aggarwal, Director of FIU-IND, hailed the approval as a turning point for the crypto industry in India, pointing out that it considerably strengthens the credibility and legitimacy of this sector in the country. He also unveiled the creation of a working group dedicated to reviewing and improving compliance guidelines applicable to virtual digital asset service providers.
This positive development comes after Kucoin has solved his earlier non-conformity problems, which had led to a fine of 43,000 $.
Binance, for its part, would have to pay a more substantial penalty of $2 million. to put its regulatory troubles in India behind it once and for all.
The approval of Binance and Kucoin marks a significant change of tone for the crypto industry in India. The country had previously adopted an ambiguous stance, imposing strict taxes in 2022 that had driven local traders to international platforms.
The FIU-IND now oversees 47 cryptocurrency-related entities registered in the country. According to Vivek Aggarwal offshore exchanges are not required to set up separate business entities in India, but must appoint a compliance officer registered with the regulator.
India calls for global consensus
Beyond its borders, India has made the search for a global global consensus on cryptocurrency regulation a priority of its G20 presidency. in 2023. The country has managed to secure agreement from all members on global guidelines, despite itself coming under criticism for not yet legislating internally.
A crypto bill has been pending since 2021, but the Indian government has indicated that it will decide on its position in the coming months.. The approval of Binance and Kucoin seems in any case to mark a first step towards greater acceptance of the crypto asset industry in the subcontinent.
By giving the green light to these two major crypto exchanges despite their past infringements, India is sending a strong signal about its intention to embrace blockchain innovation. It remains to be seen whether the country will translate this openness into a clear regulatory framework conducive to the development of a thriving local crypto ecosystem.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
