Crypto exchange KuCoin registers with FIU-IND, months after its URL was blocked

Representative image

Offshore crypto exchange KuCoin on March 23 announced that it has now become a Financial Intelligence Unit-India (FIU-IND) compliant exchange. The announcement comes months after the exchange received a show-cause notice for not following local rules of money laundering.

Last week another global exchange, OKX, said that it will be halting its services to Indian users from April 30, in the wake of the local regulatory challenges.

This makes KuCoin the first among these exchanges to get registered in the country.

Around nine offshore exchanges including KuCoin, Binance, OKX, Houbi among others were found to be not registered under FIU-IND and weren’t aligned with the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in December 2023.

Following this, the government had ordered to block the URLs of these exchanges in India in January. Even their apps were delisted from the Apple and Google’s app stores.

Now, with this new development, KuCoin said that it will be setting up a ‘localized team’ to better understand and serve the specific needs of Indian investors and users. “Going “Glo-cal” underscores KuCoin’s priority as going global with a localization focus,” the exchange said in a statement.

KuCoin is also looking to partner with local banks and fiat partners to offer localised payment solutions.

The crypto exchange said that it will be make strategic investments in the country to support blockchain projects and educate people on blockchain and web 3.

Johnny Lyu, CEO of KuCoin, said, "KuCoin places utmost importance on user asset security. By successfully completing this registration in India, we are set to enhance the Indian users' experience and reaffirm our dedication to compliance and security. This milestone allows us to advance the conversation on crypto adoption in India, emphasizing user security and trading excellence.”

He added, “We are eager to support local innovation and build enduring educational partnerships to contribute significantly to India's blockchain ecosystem. With this development, we at KuCoin welcome partners to join us, and promote the development of the cryptocurrency industry in India"

These developments come at a time when the crypto industry globally is gearing up for an impending bull run expected in 2024, following the approval of Bitcoin ETF by the US SEC, Bitcoin price rally and the upcoming Bitcoin halving in April, among other developments.