Cryptocurrency platforms are facing strict regulatory scrutiny almost all over the world. However, the clouds seem to be shattering now. India’s Financial Intelligence Unit (FIU) has approved the registration of Binance and KuCoin, two prominent offshore cryptocurrency exchanges. These two exchanges were among nine platforms banned by the country in December. The FIU’s decision marks the first approval of offshore crypto-related entities since the ban.

KuCoin Resumes Operations, Binance Awaits Verdict

KuCoin has already resumed operations after paying a fine of $41,000, while Binance awaits further details on its penalty following an ongoing hearing with the FIU.

The ban on these exchanges was due to allegations of “operating illegally.” However, with their registration now approved, Binance and KuCoin are poised to re-enter the Indian market, subject to compliance with regulatory requirements.

Vivek Aggarwal, head of FIU-IND, mentioned that Binance’s registration was finalized, but the decision regarding its penalty was still pending. He explained that the compliance proceedings had not concluded because the amount of the penalty needed to be determined by him, and the hearing was still ongoing.

Negotiations and Compliance: Status of Other Banned Exchanges

Other exchanges that were banned in December, including Huobi, Kraken, Bittrex, Gate.io, Bitstamp, MEXC Global, and Bitfinex, are reportedly in various stages of negotiations with regulators. Kraken, Gemini, and Gate.io have initiated talks, while OKX and Bitstamp have submitted plans to exit the country.

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The ban on unregistered offshore entities remains in place, as per the FIU’s directives issued in December. Even those that have initiated discussions with the FIU are barred from operating until registration is granted.

While Binance and KuCoin’s registration signals progress in regulatory compliance, the exact timeline for Binance’s resumption of operations in India remains uncertain. The exchange has secured registration with the FIU but awaits the outcome of its ongoing hearing. It is expected to face a significant fine before reinstating services in the nation. Keep visiting us for more updates.