Binance and KuCoin Reenter Indian Market: Compliance and Implications
The Indian cryptocurrency market is heating up as two major players, Binance and KuCoin, make their comeback after being blocked by the government last year. While KuCoin has already paid a fine of $41K and resumed operations in India, Binance is still in the process of completing compliance proceedings.
The Financial Intelligence Unit India (FIU IND) announced on Friday that both Binance and KuCoin are now registered virtual digital assets service providers (VDASPs) in the country, opening up the competition for the Indian crypto market. However, Binance is still in the midst of compliance proceedings and has yet to pay the penalty, which could amount to up to $2 million.
Vivek Aggarwal, the head of FIU, stated that the amount of penalty for Binance is still being decided in a hearing. On the other hand, KuCoin has already paid its penalty and resumed operations in India. The Indian government is also reevaluating cases of other offshore cryptocurrency exchanges like Kraken, Gemini, and Gate.io.
The reentry of Binance and KuCoin into the Indian market is expected to have a significant impact on the crypto industry in the country. With India being a highly coveted market for digital assets due to its large population of investors, the entrance of these major exchanges could pave the way for other offshore web3 companies to enter the market.
The announcement by the Indian regulator also signals a shift in the government’s stance towards the crypto industry, with the Central Bank of India being less vocal against cryptocurrencies than in previous years. The reentry of Binance and KuCoin could also boost the adoption of their respective native coins, BNB and KCS, in the Indian market.
BNB price has seen a 5.3 percent increase in the past week, hovering around $595 on Friday, with a fully diluted valuation of about $91 billion. KuCoin’s native coin KCS has also gained over 6.6 percent in the last week, trading at around $10.5 on Friday. The bullish momentum in the Indian market could potentially drive both coins to new all-time highs in the near future.
