FIU-India to End Ban on Binance, Paving the Way for Crypto Exchange

In a significant move, the Financial Intelligence Unit-India (FIU-India), tasked with scrutinizing dubious financial transactions, is poised to lift the ban on Binance , the world's largest cryptocurrency exchange. Following the recent lifting of restrictions on KuCoin Exchange after imposing a hefty penalty, Vivek Aggarwal, Director of FIU-IND and Additional Secretary in the Department of Revenue, disclosed the ongoing proceedings regarding Binance during his debut media interaction at a workshop organized by the Bharat Web3 Association (BWA) in New Delhi.

While Binance's registration process advances, discussions around penalties and compliance are still underway. This development comes amid the decision of rival KuCoin to register in March, contrasting with OKX 's decision to cease operations in India from April 30. In a related move, the government previously ordered the blocking of URLs and removal of apps of nine offshore exchanges, including Binance , KuCoin Exchange , and Huobi Global , for non-compliance with the Prevention of Money Laundering Act (PMLA) of 2002.

With a renewed focus on regulatory compliance, virtual digital asset service providers must register with FIU India as Reporting Entities, adhering to PMLA requirements. Meanwhile, the crypto landscape witnessed notable developments as former Binance CEO Changpeng Zhao faced legal repercussions in the United States, receiving a four-month prison sentence for money laundering violations. The verdict, while lighter compared to recent crypto convictions, underscores the evolving regulatory climate impacting industry stakeholders.

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