Your Guide to Offshore Cryptocurrency Exchanges Registration in India π
Are you a crypto enthusiast interested in the latest news regarding offshore cryptocurrency exchanges in India? The recent approval by the Financial Intelligence Unit (FIU) for Binance and Kucoin to register as Virtual Asset Service Providers (VASPs) could be of interest to you. Let’s dive into the details of this development and what it means for the crypto market in India.
Approval of Binance and Kucoin as VASPs π
- The FIU has approved the applications of offshore cryptocurrency exchanges Binance and Kucoin to register as Virtual Asset Service Providers (VASPs) in India.
- Kucoin paid a penalty of Rs 35.5 lakh for past non-compliances, and the ban on its websites has been lifted.
- Binance’s quantum of liabilities is still being computed, according to a top government official.
Insights from FIU Director π§
- Vivek Aggarwal, director of FIU-IND, stated that Binance and Kucoin are now registered with FIU India.
- He mentioned that the FIU guidelines do not mandate offshore entities to register a separate business in India.
- However, there must be a principal compliance officer registered with FIU India for interaction purposes.
Impact on Individual Investors π€
- Authorities will investigate individual investors who have been trading on offshore platforms illegally, potentially evading taxes.
- Legitimacy of transactions, money sources, banking channels, and tax declarations will be scrutinized for compliance.
Government’s Action Against Offshore Platforms π«
- In January, Binance, along with eight other offshore cryptocurrency platforms, was prohibited from operating in India due to non-compliance with FIU guidelines.
- Bitstamp and OKX have ceased operations in India, while Gate.io and Kraken are in discussions with the FIU.
- FUI now oversees 47 registered entities involved in trading and handling crypto assets in India.
FIU’s Stance on Legitimacy π‘οΈ
- Aggarwal emphasized that licensing ensures legitimacy, while FIU registration aims to secure the country’s financial system.
- A working group comprising FIU and industry players will establish self-regulatory guidelines for VDA business growth in India.
Hot Take: The Future of Offshore Crypto Exchanges in India π
Stay tuned for more updates on offshore cryptocurrency exchanges’ operations in India as the regulatory landscape evolves. The approval of Binance and Kucoin as VASPs marks a significant step towards legitimizing crypto trading in the country. The collaboration between FIU and industry stakeholders to set up self-regulatory guidelines demonstrates a proactive approach to ensure the growth and credibility of the VDA business in India. Keep an eye on further developments in the crypto market as new regulations and opportunities emerge.
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