Binance, the top exchange for digital currencies, and its rival KuCoin have just made history by becoming the first offshore crypto company to gain approval from India’s anti-money laundering organization. This is a major milestone for both companies, especially after facing strict restrictions and accusations of illegal activities in the country.
Regulatory Reconciliation and Resumption
Amidst a storm of legal obstacles, Binance and KuCoin have triumphantly returned to the Indian market, according to a high-ranking official from FIU-IND, the Finance Ministry’s financial crime-fighting division. After overcoming numerous challenges, KuCoin has paid a hefty fine of $41,000 and resumed its operations.
However, the fate of Binance hangs in the balance as they await the outcome of their compliance proceedings, which will determine the ultimate penalty for their actions.
As the curtains closed on the previous year, the offshore entities in India faced a tumultuous ending. With over nine platforms being banned from operating, it was a challenging time for these companies. But the drama doesn’t end there.
As the new year unfolds, the fate of these platforms is still uncertain. While some, like Kraken, Gemini, and Gate.io, have begun negotiations to regain their footing, others, like OKX and Bitstamp, are making plans to bid farewell to India.
Growth Amid Regulation
Amidst the hurdles of strict regulations, the cryptocurrency landscape in India has flourished with remarkable strides. In the year 2021, the market was estimated at a whopping $73.8 million and is poised to witness a staggering growth, almost doubling to $123.2 million by 2025.
Till the year 2030 when the market could soar to an impressive $241.1 million. The surge in the number of crypto enthusiasts is a testament to the market’s robust compound annual growth rate (CAGR) of 54.11% from 2024 to 2032, with a potential market value of $343.5 million in 2024 alone.
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Bitcoin hits the milestone of one billion transactions
India’s crypto scene is on the rise, thanks to the government’s forward-thinking approach to revamping regulations. The buzz around “virtual digital assets” (VDAs) has officially encompassed both cryptocurrencies and non-fungible tokens (NFTs). And with recent changes to the Information Technology Act of 2000, a stricter Know Your Customer (KYC) process is now required for new users on crypto exchanges.
Did you know that for an exchange to legally operate, it not only has to register with FIU India, but also keep detailed transaction records for five years? This integration into the Prevention of Money Laundering Act of 2002 not only holds exchanges accountable, but also classifies them as reporting entities, making the regulatory framework even more stringent.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.