Binance, one of the world’s largest cryptocurrency exchanges, is resuming its operations in India after a seven-month ban imposed by local authorities.
Introduction
Binance is back on the Google Play Store and Apple App Store in India after a seven-month ban imposed by local authorities for operating 'illegally' in the country. The exchange fulfilled its compliance requirements by registering with India’s Financial Intelligence Unit (FIU-IND), a necessary step for adherence to anti-money laundering (AML) regulations. On August 15, the crypto exchange announced that the registration with FIU-IND marks a significant milestone for Binance and will strengthen its operations in India, a major market that ranks among the top five globally for transaction volume across various crypto platforms.
Regulatory Challenges and Penalties Faced by Binance in India
At the end of last year, India blocked several foreign crypto exchanges, including Binance, Kraken and KuCoin, because they hadn’t registered with the local authorities. FIU-IND, responsible for overseeing financial activities, had taken these actions to enforce compliance. In particular, Binance had been banned from operating in India because it didn’t follow local rules aimed at preventing financial crimes like money laundering. The crypto exchange intends to pay a $2.25 million fine imposed by the FIU for noncompliance and faces an $86 million demand from India’s Directorate General of Goods and Services Tax Intelligence for GST non-compliance. While Binance has registered with the Indian government agency, it has not been confirmed by the officials whether it has paid the previously imposed penalty. However, reports suggest that Binance has paid off the $2.5 million fine.
Conclusion
Thus, registration and compliance with FIU-IND rules became a significant step for Binance, allowing to strengthen its positions in the important Indian market. This also emphasizes India’s push for stricter regulation of the crypto industry.
Binance's return to the Indian market demonstrates the readiness of the crypto exchange to comply with local regulations and strengthen its position in the region.
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