Binance Resumes Operations in India After Regulatory Compliance
Binance, the world’s largest cryptocurrency exchange, has officially resumed operations in India after a seven-month hiatus, marking a significant development in the country’s cryptocurrency landscape. The exchange announced on August 15, 2024, that it has successfully registered as a reporting entity with India’s Financial Intelligence Unit (FIU-IND), addressing previous regulatory concerns.
This move comes after Binance, along with eight other crypto exchanges, was effectively banned from operating in India in December 2023. The Financial Intelligence Unit had accused these platforms of operating illegally by failing to register with the FIU and comply with the country’s anti-money laundering (AML) and anti-terrorist financing regulations.
To rectify the situation, Binance has paid a fine of 188.2 million rupees ($2.25 million) imposed by the FIU for failing to adhere to its statutory obligations under India’s Prevention of Money Laundering Act (PMLA). A Binance spokesperson confirmed to industry sources that the penalty has been settled.
Richard Teng, CEO of Binance, described the registration as an “important milestone” for the exchange. “Recognizing the vitality and potential of the Indian virtual digital asset market, this alignment with Indian regulations allows us to tailor our services to the needs of Indian users,” Teng stated in the announcement.
With this regulatory clearance, Binance’s website and mobile applications are now fully accessible to Indian users. The exchange emphasized its commitment to implementing robust anti-money laundering policies and a comprehensive framework for combating the financing of terrorism in the Indian market.
India’s cryptocurrency market presents significant potential, with the country ranking in the top five globally for estimated transaction volume across various crypto ecosystems, according to Chainalysis’ 2023 Global Crypto Adoption Index. However, the market has faced challenges due to regulatory pressures and stringent tax policies in recent years.
Binance’s re-entry into India marks its 19th global regulatory milestone. The exchange has been actively working to address regulatory concerns in various jurisdictions, including a $4.3 billion settlement in the United States last year to resolve criminal charges.
As Binance resumes operations in India, it faces the challenge of navigating a complex regulatory landscape while tapping into one of the world’s largest potential cryptocurrency markets. The development is likely to be closely watched by industry observers and could potentially influence the broader regulatory approach to cryptocurrencies in India.
