Fintech
Binance and Kucoin approved by FIU to provide virtual asset services in India
Of Fintech News Singapore
May 13, 2024
India’s Financial Intelligence Unit (FIU) has granted approval to cryptocurrency exchanges Binance AND Kucoin to operate as virtual asset service providers (VASPs) in the country, according to the Economic times.
Vivek Aggarwal
Vivek Aggarwal, director, FIU-IND, confirmed the approvals during a press interaction. Aggarwal highlighted that this registration would improve transparency in the operations of these platforms, facilitating the upcoming initiation of the Suspicious Transaction Report (STR) process.
Kucoin, which had earlier faced a ban due to non-compliance issues, settled its dues by paying a fine of Rs 35.5 lakh. Sanctions against his operations have since been lifted.
On the other hand, Binance, the world’s largest cryptocurrency exchange, which was also placed under a temporary ban in January, is in the process of resolving its liabilities, which are expected to be around $2 million, although the figure The exact details have yet to be confirmed by the FIU.
The FIU does not require offshore entities to set up a separate business entity in India. However, they must appoint a lead compliance officer in the country, who will act as the main point of contact with the FIU.
This development follows the previous ban imposed in January on nine offshore cryptocurrency platforms, including Binance and Kucoin, due to their failure to adhere to UIF and anti-money laundering guidelines.
Of these, some like Bitstamp and OKX have ceased operations in India, while others like Gate.io and Kraken are still negotiating with the FIU.
Currently, the FIU oversees 47 registered entities involved in trading or managing cryptocurrencies in India.
Aggarwal further said that the legitimacy of cryptocurrency trading in India depends on licensing, although FIU registration mainly focuses on safeguarding against financial crimes.
In collaboration with industry stakeholders, FIU plans to establish a working group to develop self-regulatory guidelines to promote the growth of Virtual Digital Asset (VDA) business in India, drawing on best practices from global regulators.
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