Binance, the world's largest cryptocurrency exchange, has registered with India's Financial Intelligence Unit (FIU), a senior FIU official said on Friday, as the exchange looks to resume operations in the country.
The exchange was banned from operating in India in December for breaching local regulations as part of the financial watchdog's crackdown on offshore crypto exchanges operating in the country without registration.
India requires virtual digital asset service providers, such as crypto exchanges, to be registered with the FIU as a reporting entity and comply with the obligations imposed by the country's anti-money laundering regulations.
Although Binance has registered with the FIU, it can only resume operations after paying a penalty for previous breaches, which is yet to be determined, said Vivek Aggarwal, director of the FIU.
The FIU had issued show cause notices to 9 offshore cryptocurrency exchanges in December 2023 for non-compliance with local regulations.
The financial regulator had also asked the electronics and information technology ministry to block online access to exchanges.
Offshore crypto exchange KuCoin has also registered with the FIU and resumed operations after paying a fine of 3.45 million rupees ($41,313), Aggarwal said.
Kucoin had announced the registration in March, but had not shared details of the penalty.
Binance and KuCoin did not immediately respond to emails seeking comment.
© Thomson Reuters 2024
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