Binance finalises initial registration with FIU

The largest globally operating cryptocurrency exchange Binance has completed its initial registration with the Financial Intelligence Unit. This registration signifies the exchange’s acknowledgment and compliance with the regulatory requirements set forth by the FIU, which plays a crucial role in overseeing and regulating financial activities, including those related to cryptocurrencies, in India. Further compliance proceedings are still ongoing, indicating that Binance is likely undergoing additional assessments or fulfilling certain requirements mandated by the regulatory authorities in India.

All the additional compliance proceedings may involve various measures such as ensuring adherence to anti-money laundering (AML) and know your customer (KYC) regulations, implementing robust security measures to protect users’ funds and data, and maintaining transparency in its operations. The exchange will be operational in India only after the completion of these processes and payment of a penalty fee is yet to be decided.

While the initial registration with FIU demonstrates Binance’s commitment to regulatory compliance in India, the ongoing compliance proceedings indicate that the exchange is actively working towards meeting all regulatory requirements and standards set by the authorities in the country.

Binance’s registration closely follows the registration of its competitor, KuCoin, which occurred in March. In contrast, OKX chose to cease its services in India as of April 30.

Vivek Aggarwal, Director of FIU and Additional Secretary of the Department of Revenue, Government of India said, “Binance’s operations have not yet resumed and the quantum of penalty is yet to be decided. Binance, as of now, has completed the initial registration with FIU. Its penalty and compliance proceedings are still going on,”  at a workshop conducted by industry body Bharat Web3 Association (BWA) in New Delhi on May 10.

In addition to Binance and KuCoin, several other cryptocurrency platforms received regulatory notices in December last year. Subsequently, in January of this year, these platforms faced a ban. This regulatory action was likely prompted by concerns regarding compliance with financial regulations, particularly related to anti-money laundering (AML) and know your customer (KYC) requirements. The ban was likely implemented to ensure that these platforms adhere to the regulatory standards set by the authorities.