India Approves Binance, KuCoin to Provide Virtual Asset Services

Crypto exchanges Binance and KuCoin have been granted approval to operate as Virtual Asset Service Providers (VASPs) in India.

Director of the Financial Intelligence Unit (FIU) of India, Vivek Aggarwal, stated that the approvals will enhance transparency in their operations and will aid the the suspicious transaction report (STR) submission process.

India had previously banned crypto exchanges such as Binance, KuCoin, and OKX for failing to comply with the country's regulatory policies. Bitstamp and OKX have terminated their operations in India while Kraken and Gate.io are still negotiating with the FIU.

Kucoin had faced a ban as a result of non-compliance but sanctions have been lifted after the exchange paid a penalty of Rs 35.5 lakh (US$45,000).

Binance also settled with the FIU, paying a penalty of around US$2 billion in order to return to the country after being banned.

Aggarwal emphasized that the legitimacy of crypto asset trading in India depends on licensing and that the FIU's focus is on safeguarding against financial crimes.

Earlier this month it was revealed that the Reserve Bank of India is working towards enhancing accessibility to its digital currency by eliminating the requirement for internet connectivity.

Governor Shaktikanta Das said, "One of the key features of cash is that it works offline. We are working on making the CBDC transferable in the offline mode also."

While industrialised nations are wary of trying out digital currencies supported by central banks, India is one of the few economies that has done so.