KuCoin Completes Registration with Financial Intelligence Unit of India: Details

To ensure that the cryptocurrency industry is safe for investors, India has been tightening the reins on cryptocurrency players. Now, KuCoin has become the latest international cryptocurrency exchange to complete India’s Financial Intelligence Unit (FIU) compliance. In February this year, the Indian government issued a warning to all cryptocurrency players to bring their respective businesses under India’s legal compliance framework so that they can remain operational and operational.

In an official update published on X, the Seychelles-based cryptocurrency exchange confirmed that it will now begin deducting 1% TDS on every crypto trade triggered by users through its platform.

“Become a member today and be part of the revolution. Join us and become the pioneer of compliant cryptocurrency trading in India,” the exchange wrote in an announcement on X.

KuCoin’s tax reduction process for Indian investors and traders will begin on April 10. TDS collected by the exchange will be deposited with Indian financial authorities. Cryptocurrency transactions will be deducted from the 1% tax, including trading activities, selling crypto assets, acquiring crypto assets, depositing them into wallets, purchasing NFTs, etc.

This TDS deduction rule is implemented by the Indian government in 2022. The Treasury Department wants to track cryptocurrency transactions, most of which are largely anonymous.

Members of the Indian cryptocurrency community have repeatedly urged the Indian Ministry of Finance to amend this TDS law. The community wants the government to reduce it from 1% to 0.01%. Despite strong protests, the government has not made any changes in this 1% TDS rule so far.

In the case of KuCoin, after recently facing legal hurdles in the United States, it is only natural that the exchange took quick steps to bring its operations in line with Indian compliance standards in order to continue operating in the country.

In early March, U.S. prosecutors charged the exchange and its two founders with failing to comply with U.S. anti-money laundering rules. According to US Attorney Damian Williams, the exchange received more than $5 billion (approximately Rs. 41,619 crore) and transferred more than $4 billion (approximately Rs. 33,295 crore) of suspicious and criminal funds.