India's Financial Intelligence Unit (FIU-IND) announced on May 10 that Binance and KuCoin have successfully registered with the regulatory body. This move marks a significant shift in the credibility of cryptocurrency exchanges within the country, particularly considering that both platforms were among several offshore entities banned last year.

Vivek Aggarwal, the head of FIU-IND, emphasized the importance of this approval, stating that it signifies a credibility shift for the cryptocurrency industry in India. Aggarwal also highlighted the unit's plans to establish a working group to review compliance guidelines related to anti-money laundering laws for virtual digital asset service providers. He stressed that safeguarding the Indian economy and preventing financial crimes are crucial for enhancing the credibility and legitimacy of businesses operating in the cryptocurrency sector.

While KuCoin has already resumed its operations after paying a penalty of $41,000, Binance is yet to resume its activities. The platform is expected to settle its penalty after a hearing with the FIU, with sources suggesting a potential fine of $2 million. Binance, which previously held a dominant market share in India, accounting for nearly 90% of the country's cryptocurrency holdings, is in negotiations with regulators to resolve the issue.

Aggarwal revealed that a total of 48 crypto entities are now registered as reporting entities under India’s Prevention of Money Laundering Act. The recent meeting between the FIU and financial journalists marked the first official interaction between the regulatory body and the crypto industry. This development comes after India's imposition of strict crypto taxes in 2022 and a subsequent market downturn, which led Indian traders to switch to international exchanges. However, the ban on offshore entities saw trading volumes shift back to Indian exchanges.

India's stance on cryptocurrencies has been somewhat ambiguous, but the recent registration of Binance and KuCoin, along with other crypto entities, signals a potential shift towards a more regulated and transparent crypto ecosystem in the country.