Binance registers with FIU to resume India operations

Binance registers with FIU: Binance, the world's leading cryptocurrency exchange, has taken steps towards resuming operations in India by registering with the country's Financial Intelligence Unit (FIU), as confirmed by a senior FIU official on Friday.

The exchange had been prohibited from operating in India since December due to non-compliance with local regulations, part of the authorities' crackdown on offshore crypto exchanges operating in the country without proper registration.

India mandates that virtual digital asset service providers, such as crypto exchanges, register with the FIU as reporting entities and adhere to anti-money laundering rules.

Although Binance has completed its registration with the FIU, it must first settle penalties for past non-compliance, the amount of which is yet to be determined, according to Vivek Aggarwal, director of the FIU.

In December 2023, the FIU issued show-cause notices to nine offshore cryptocurrency exchanges for non-compliance with local regulations. Additionally, the financial watchdog requested the Ministry of Electronics and Information Technology to block online access to these exchanges.

Another offshore crypto exchange, KuCoin, has also registered with the FIU and resumed operations after paying a fine of 3.45 million rupees ($41,313), as disclosed by Aggarwal. KuCoin announced its registration in March but did not disclose details of the penalty incurred.

Both Binance and KuCoin have not immediately responded to requests for comment via email.

(With Reuters inputs)