Crypto Exchanges Gain Credibility in India
Vivek Aggarwal, the head of FIU-IND, said the approval marks a credibility shift for the cryptocurrency industry within the country.
Aggarwal said that the unit plans to establish a working group in collaboration with the industry to review compliance guidelines related to anti-money laundering laws for virtual digital asset service providers.
According to Aggarwal, the legitimacy and credibility of the industry lie in the hands of the parliament and the government as a whole
He believes that safeguarding the Indian economy and preventing financial crimes can help businesses operating in the cryptocurrency sector gain more credibility and legitimacy within the system.
KuCoin, the first crypto entity to pay the penalty amounting to $41,000, has already resumed its operations.
On the other hand, Binance is yet to resume its operations as it is expected to settle its penalty after a hearing with the FIU.
According to sources familiar with the matter cited by The Economic Times, Binance is likely to face a $2 million fine.
Prior to its ban, Binance reportedly held a dominant market share, accounting for nearly 90% of the estimated $4b in cryptocurrency holdings amongst Indian citizens.
Negotiations have commenced between the regulator and other sanctioned platforms such as Kraken, Gemini, and Gate.io.
Meanwhile, OKX and Bitstamp have submitted plans to exit the Indian market.
