Binance and KuCoin, two major cryptocurrency exchanges, have recently gained approval from India’s anti-money laundering watchdog.
This marks a significant milestone for both platforms, considering they had previously faced restrictions for operating without authorization in the country.
Binance and KuCoin Re-Enter Indian Market
After navigating legal obstacles, Binance and KuCoin have successfully re-entered the Indian market, as confirmed by a senior official at FIU-IND, a segment of the Finance Ministry tasked with combating illicit financial activities.
KuCoin has already paid a fine of $41,000 and resumed its services in India. However, Binance’s operations remain paused pending the conclusion of compliance proceedings, during which the final penalty will be determined.
Last year, both platforms faced challenges when they were among over nine offshore entities banned from operating in India. While negotiations have begun for Kraken, Gemini, and Gate.io, OKX and Bitstamp are preparing to exit the Indian market.
Cryptocurrency Market in India: Growth and Regulatory Developments
Despite facing regulatory challenges, the cryptocurrency market in India has experienced significant growth. In 2021, the market was valued at $73.8 million and is expected to nearly double by 2025, reaching $123.2 million. By 2030, projections indicate it could expand to $241.1 million. This growth is fueled by a strong compound annual growth rate (CAGR) of 54.11% from 2024 to 2032, with the market potentially reaching $343.5 million in 2024 alone.
Several factors contribute to the expansion of crypto in India, including the government’s proactive stance on refining crypto regulations. The term “virtual digital assets” (VDAs) has been officially adopted to encompass cryptocurrencies and non-fungible tokens (NFTs). Amendments in the Information Technology Act of 2000 mandate a stronger Know Your Customer (KYC) process for new users on crypto exchanges.
Furthermore, to operate legally, exchanges must register with FIU India and maintain transaction records for five years. These exchanges are classified as reporting entities under the Prevention of Money Laundering Act of 2002, strengthening the regulatory framework.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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