SUMMARY
FIU director said that Kucoin has paid a fine of INR 35.5 Lakhs for not complying with laws in the past, adding that the ban on the crypto exchange’s website has been revoked
Without offering a precise number, a top government official said that authorities are still calculating the “quantum of liabilities” for Binance
In January, MeitY banned nine overseas crypto platforms, including Binance and Kucoin, for flouting provisions of the PMLA and not registering as reporting entities with the FIU
Currently banned by the Indian government, crypto exchange Binance has reportedly received approval from the Financial Intelligence Unit (FIU) of the finance ministry to operate as a virtual asset service provider (VASP).
As per an ET report, the unit also approved a similar application from Kucoin. WIth this, all decks have been cleared for both platforms to operate and offer crypto trading services in the country.
“So Kucoin and Binance have got registered with FIU India… We are now having a full visibility of transactions that we need and the STR (suspicious transaction report) submission process will start soon,” FIU-IND’s director Vivek Aggarwal said.
He also said that Kucoin has paid a fine of INR 35.5 Lakhs for not complying with laws in the past, adding that the ban on the crypto exchange’s website has been revoked. Meanwhile, authorities are said to be still calculating the “quantum of liabilities” for Binance.
It is pertinent to note that the unit oversees trade in virtual digital assets (VDA).
Reiterating FIU guidelines, Aggarwal said that offshore entities do not need to register a separate business in India but rather have a “principal compliance officer who gets registered with FIU, India, and whose address and details are available to FIU for interacting”.
On a question about individual investors trading on offshore illegal crypto platforms and evading taxes, he said that such transactions need to be studied. Aggarwal, however, added that such investors would come under the ambit of illegality.
“If the platform is illegally operating, the investors are also illegally operating. It has to be seen if there is a legitimate transaction that has happened, from where the money has come, whether it is going through a banking channel, and whether it is declared in the tax return of the concerned taxpayer,” he reportedly added.
This comes weeks after reports surfaced that Binance was set to make its way back into the country by paying a penalty of around $2 Mn (INR 16.71 Cr) and registering as an entity with the FIU.
The story traces its origins back to December last year when the unit issued notices to nine overseas crypto platforms, including Binance and Kucoin, for flouting provisions of the Prevention of Money Laundering Act (PMLA). The notices were also dished out to these companies for not registering as reporting entities with the FIU.
Eventually, in January this year, the FIU wrote to the Ministry of Electronics and Information Technology (MeitY) seeking a complete ban on the websites and apps of the nine crypto exchanges.
After disappearing from the country, Binance reportedly held talks with the government to revoke the ban but the Centre stuck to its demand and asked it comply with rules. Previously, it was reported that Binance was willing to pay taxes and penalties but was not yet ready to comply with PMLA norms.
As per current rules, all onshore and offshore cryptocurrency platforms operating in the country have to register as “reporting entities’ and comply with PMLA, 2002. Under these mandates, crypto exchanges have to mandatorily seek know your customer (KYC) details from customers while maintaining account records and business correspondence with clients.
Owing to the Centre’s demands, multiple platforms including the likes of CoinDCX, WazirX, Coinswitch, and Zebpay, have registered with the FIU.
FAQs
The Indian government's Financial Intelligence Unit (FIU) has approved the registration applications of offshore cryptocurrency exchanges Binance and Kucoin as Virtual Asset Service Providers (VASPs) to operate in India. Kucoin, after paying a penalty of ₹35.5 lakh for past non-compliances, had its ban lifted.
Is bybit legal in India? ›
While Bybit is not explicitly banned in India, there is a risk that trading on the platform could be considered illegal or subject to scrutiny by Indian authorities. Indian users should be aware of the potential legal implications and seek professional advice if necessary.
Does Binance operate in India? ›
This week, the value of BNB was eroded by 1%. According to a report by the local news site Moneycontrol, crypto exchange Binance has returned to the Indian crypto market after its formal registration from India's financial intelligence agency.
Does Binance have an office in India? ›
Binance India is classified as Micro enterprise in the financial year 2022-23. It has its unit situated at Orai, Uttar Pradesh.
Where can Binance be used? ›
- Africa. (2 countries supported) Nigeria. South Africa.
- America. (6 countries supported) Argentina. Brazil. Chile. Colombia. ...
- Asia & Pacific. (14 countries supported) Afghanistan. Australia. Cambodia. ...
- Europe. (19 countries supported) Bulgaria. Czech Republic. Europe. ...
- Middle East. (4 countries supported) Egypt. Israel. Saudi Arabia.
As per an ET report, the unit also approved a similar application from Kucoin. WIth this, all decks have been cleared for both platforms to operate and offer crypto trading services in the country. “So Kucoin and Binance have got registered with FIU India…
Is Bybit Fiu compliant? ›
Operating within a regulatory gray area, Bybit is not registered with India's Financial Intelligence Unit (FIU) or several other global regulatory bodies. However, the platform prioritizes compliance with Anti-Money Laundering (AML) regulations.
Which crypto exchanges are FIU compliant in India? ›
The Indian government's Financial Intelligence Unit (FIU) has recently granted Binance and KuCoin, two major offshore cryptocurrency exchanges, the status of Virtual Asset Service Providers (VASPs) in India.
What is the penalty for Binance in India? ›
ET was the first to report in the April 18 edition that Binance, the world's largest cryptocurrency exchange that was banned by the government in January, is poised to return to India by paying a penalty of about $2 million.
Is Binance Fiu registered? ›
MUMBAI, May 10 (Reuters) - 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 seeks to resume operations in the country.
In January, Binance was among nine offshore cryptocurrency platforms that were banned from operating in India through web addresses and mobile applications. The action was in response to the platforms' failure to comply with FIU and PMLA guidelines.
Can I open Binance account in India? ›
Due to the rising market of crypto assets, Binance in India has emerged as a leading crypto exchange. Further, Binance allows Indian users to directly deposit funds using Wire Transfer, debit/ credit card, etc. And offers a series of features such as crypto lending, staking, etc.
How can I withdraw from Binance in India? ›
Initiate withdrawal from Binance
Go to your wallet on the Binance app and click on Withdraw. Choose Bitcoin from the list of cryptocurrencies, and when the popup appears, click on Send via Crypto Network.
Is Binance legal in India? ›
India's stance on cryptocurrency exchanges has been clear – comply with all laws to continue operations within the country. Binance's decision to reenter the Indian market as a fully compliant entity underscores the importance of adhering to regulatory guidelines and upholding the integrity of the financial system.
What countries is Binance restricted in? ›
As per the exchange's list of 'prohibited countries,' Binance is not operable in Canada, the Netherlands, the United States, Cuba, the Democratic People's Republic of North Korea (“DPRK”), Iran, Syria, the Crimea region, or any non-government controlled areas of Ukraine.
What happens if Binance catches you using a VPN? ›
Yes, it's perfectly legal to use a VPN with Binance. However, you should bear in mind that Binance is banned in the US. Therefore, using a VPN to access it while you're in the US goes against Binance's Terms of Service. If Binance detects that you're using a VPN, it might ban you from the site.
What happened to Bybit in India? ›
Apple's decision aligns with the FIU's directives, adding to the regulatory pressures faced by crypto exchanges operating in India. Apple india has reportedly removed the Bybit app from its App Store on March 22.
Which crypto broker is legal in India? ›
Zebpay. Zebpay is one of the oldest and most trusted cryptocurrency exchanges in India. It has a strong track record and offers a user-friendly interface for traders. The platform also provides a mobile app for easy trading on the go.
What countries is Bybit legal in? ›
Founded in 2018 and headquartered in Singapore, Bybit is available globally, with the exception of service-restricted countries that include: The U.S, Quebec (Canada), Singapore, Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, Sudan, and Mainland China.
