Binance and KuCoin have obtained registration from the anti-money laundering regulatory authority in India, marking a step forward for the credibility of cryptocurrencies. 

These two exchanges, among the nine that were banned in December, are the first offshore entities linked to cryptocurrencies to receive registration in India. 

The regulatory authority commented that these recordings give “a little more credibility to the system.” Let’s see all the details below. 

Anti-money laundering registration in India: Binance and KuCoin get the green light

Binance, the leading cryptocurrency exchange in the world, and its competitor KuCoin have become the first offshore entities related to cryptocurrencies to obtain approval from the Financial Intelligence Unit of India (FIU-IND), part of the Indian Ministry of Finance.

This happens months after both companies were banned for “operating illegally.” These two companies, along with Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex, had been excluded from India towards the end of last year.

The director of FIU-IND, Vivek Aggarwal, stated that the approval of Binance and KuCoin represents a positive signal for the credibility of cryptocurrencies in the country. 

Aggarwal also explained that the unit will establish a working group to review compliance guidelines on money laundering in the context of virtual digital asset services. 

He also emphasized that official recognition of the industry requires the support of the Indian parliament and government.

KuCoin was the first cryptocurrency exchange to pay a fine, paying 41,000 dollars, and has resumed its operations. On the other hand, Binance will have to attend a hearing with the FIU and pay a fine in order to resume its activities. 

According to the Economic Times, Binance may have to pay up to 2 million dollars. Vivek Aggarwal confirmed that Binance is registered, but the compliance process is not yet complete as the amount of the fine must be determined after the hearing.

Other entities like Kraken, Gemini, and Gate.io are in talks with the regulatory authority, while OKX and Bitstamp have submitted plans to exit the Indian market.

India now counts 48 cryptographic entities registered as reporting entities under the anti-money laundering law. 

The meeting with the press last Friday represented the first time that the FIU officially spoke about cryptocurrencies and follows a meeting between the FIU and the representatives of the 48 registered entities, also a novelty.

India’s ambiguity on crypto: from taxes to G20 global consensus

At the national level, India has maintained an ambiguous position on cryptocurrencies. 

In 2022, the high taxes imposed on digital assets, together with the crisis in the cryptocurrency markets, have pushed many Indian traders towards international exchanges. Damaging the local sector. 

However, trading volume has returned to Indian exchanges after the ban imposed on offshore entities.

During its presidency of the G20 in 2023, India pushed for a global consensus on the regulation of cryptocurrencies, managing to obtain the agreement of all members on the general guidelines. 

However, the country has been criticized for trying to obtain international consensus without having clear legislation on cryptocurrencies.

India has kept a cryptocurrency bill in cold storage since 2021 and indicated that it will decide its position in the coming months.

A prominent legislator told CoinDesk that there probably won’t be any cryptocurrency bill before mid-2025.