After less than a year of falling out of favor with Indian regulatory authorities, the duo of Binance and KuCoin has successfully negotiated their way back into the Indian market, underscoring the exchanges' commitment to regulatory compliance amid strict global restrictions imposed by several authorities.
The new development revealed via the Indian Financial Intelligence Unit India (FIU) on Friday confirmed that Binance and KuCoin met the criteria for re-entrance into the world's most populous nation's market.
Recall that late last year, the Indian government, through the FIU, had banned the operations of nine trading platforms, including Binance KuCoin, OKX, Coinbase, Huobi, Kraken, and three others in the South Asian nation.
Following the restriction, some affected exchanges, like OKX, exited the Indian market. Others like Binance and KuCoin opted for negotiations. Notedly, Binance's persistence in the face of dialogue yielded a positive outcome, following an agreement with the FIU to pay an imposed $2 million fine.
KuCoin Gains Complete Re-Entrance - Binance's Full Approval Pending
According to the FIU, KuCoin completed its market re-installment procedure, having finalized the payment of an imposed $41K fine. The regulatory body also noted that the trading platform has begun operation in the country.
On the other hand, the FIU stated that Binance is yet to conclude compliance responsibilities. Hence, the delay in paying the already agreed $2 million fine, which invariably implies that only KuCoin has begun operation in India while Binance is close to joining it.
Implications Of KuCoin And Binance's Approval In India
KuCoin and Binance's potential re-entrance into the Indian marketplace could only mean one thing for other exchanges seeking approval in the South Asian nation. It would spur them to embrace negotiations, with the assurance that the Indian government is responsive to dialogue and would most likely reach a common ground with compliant exchanges.
Notably, trading platforms like Kraken, Gemini, and Gate.io have opted for dialogue with the Indian authorities, indicating that their market re-installment might be imminent.
How events unfold remains to be seen. However, the FIU's unyielding stance on regulatory compliance highlights the complicated nature of meeting criteria and standards from the various regulatory bodies across the globe.
