Stage set for return of Binance, Kucoin to India

livemint.com:

FIU) called for blocking web addresses of a number of global crypto firms which were not registered in the country, over concerns that some of them may be misused for money-laundering. On Friday, FIU said that it has lifted Kucoin’s suspension after the exchange paid a fine of around $42,000, and is processing Binance’s application. “We are yet to decide on the quantum of fine to be levied on Binance, and the process is likely to take some time," said Vivek Aggarwal, director of FIU, which comes under the finance ministry.

"They have gotten registered with us, as part of a two-step process. The second step is to complete compliance proceedings after an order from FIU. Kucoin’s proceeding has been concluded, and they are now as compliant as an Indian virtual assets service provider (VASP)," Aggarwal said after meeting 46 VASPs on Friday.

Also read: India to block Binance, 8 other crypto platforms, slaps notices Crypto exchanges must register with regulators and comply with the Prevention of Money Laundering Act (PMLA), 2002 legislation, and FIU directives to be allowed to operate in India. While many exchanges deregistered Indian users and stopped local operations after the FIU action in December, Binance, Kucoin and a handful of others chose to apply for compliance, Aggarwal said. Among others, the exchanges are required to appoint a principal compliance officer with a local address and contact details.

Aggarwal, however, clarified that the officer has “no requirement to be in India." Indian crypto exchanges, however, do not expect any immediate impact from the global ones resuming India operations. “Kucoin has just begun collecting tax on crypto trades in India, but the taxation compliance is yet to be certified. This