Binance and KuCoin reach an agreement.

? Binance and KuCoin reach an agreement.

Binance exchange will continue to operate in India after paying a fine in favor of the Financial Intelligence Unit. Binance

– Binance exchange will continue to operate in India after paying a fine in favor of the Financial Intelligence Unit.

Users were asked to move their assets to Indian exchanges registered with the FIU after Apple removed non-compliant platforms from the App Store and the Ministry of Information Technology blocked the sites. The notices were due to the exchanges operating without complying with the Prevention of Money Laundering Act (PMLA) of 2002, which mandates strict record keeping and reporting standards.

Binance may eventually follow KuCoin, which resumed operations after paying a $41,000 fine.

Binance is registered, but the amount of the fine has to be determined by me and the hearing is still ongoing, so the compliance procedure is not finalized,” said Vivek Aggarwal, head of FIU-IND.

Sumit Gupta, Co-founder of Indian cryptocurrency exchange CoinDCX, welcomed the entry of Binance and KuCoin into the Indian market In an interview with BeInCrypto, Mr. Gupta expressed enthusiasm about the development.

A cryptocurrency ecosystem consisting of FIU compliant players will not only benefit all stakeholders but also protect them from unscrupulous players. These developments represent a significant step forward in ensuring that cryptocurrency exchanges operate in compliance with regulations such as the Prevention of Money Laundering Act (PMLA), thereby laying the foundation for a more compliant ecosystem,” Mr. Gupta told BeInCrypto.”

Balaji Srihari, Head of Operations at CoinSwitch, agrees with him.

It is commendable that leading global exchanges like Binance and KuCoin are leading by example and adhering to FIU standards. These standards establish a systematic approach to transaction monitoring and provide a dedicated channel to report suspicious activity,” Srihari told BeInCrypto.

As Binance strives for full regulatory compliance, customers are likely to incur financial obligations. This includes a 1% withholding tax (TDS) on cryptocurrency transactions, introduced in 2022, which aims to increase transparency.