Binance, KuCoin Win Registration From India Anti-Money Laundering Regulator as Crypto Credibility Improves

Binance, the world's largest cryptocurrency exchange, and rival KuCoin became the first offshore crypto-related entities be approved by India's anti-money laundering unit, months after being banned for "operating illegally."

The two have been registered with the country's Financial Intelligence Unit (FIU-IND), the most senior official of the unit, which falls under the nation's Finance Ministry, told CoinDesk. They were among more than 9 offshore entities banned –](https://www.coindesk.com/policy/2023/12/28/india-issues-compliance-show-cause-notices-to-9-offshore-exchanges-including-binance-and-kucoin/)–) others included Huobi, Kraken, Gate.io,](http://gate.io/),) Bittrex, Bitstamp, MEXC Global and Bitfinex – at the end of last year.

The approval marks a credibility shift for crypto in the nation, said Vivek Aggarwal, who heads FIU-IND, at a meeting with several financial journalists. The unit will set up a working group with the industry to review compliance guidelines on money laundering laws for virtual digital asset service providers, he said.

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“It is parliament and government as a whole,” that need to give legitimacy to the industry, he said. The registrations act to “safeguard the Indian economy. If any business is ring-fenced from being abused for financial crime then automatically it has, if not legitimacy, at least little more credibility to the system,” Aggarwal said.

KuCoin paid a penalty of $ 41,000, the first crypto entity to do so, and has resumed operations. Binance has not resumed operations because it is expected to pay a penalty after a hearing with the FIU. The Economic Times, citing people familiar with the matter, said Binance would settle with a $ 2 million fine.