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 failing to comply with local regulations as part of the financial watchdog’s crackdown on offshore crypto exchanges that were 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 obligations imposed under the country’s anti-money laundering rules.

Although Binance has registered with the FIU, it can only resume operations after paying a penalty for previous non-compliances, which is yet to be determined, said Vivek Agarwal, director of the FIU.

In December 2023, the FIU issued show cause notices to 9 offshore cryptocurrency exchanges for non-compliance with local regulations.

The financial watchdog has also asked the electronics and information technology ministry to block online access to exchanges.

Offshore crypto exchange KuCoin also registered with the FIU and resumed operations after paying a fine of 3.45 million rupees ($41,313), Agarwal said.

Kucoin announced the registration in March, but did not share details of the penalty.

Binance and KuCoin did not immediately respond to emails seeking comment.

© Thomson Reuters 2024

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