Binance Could return to India, Embraces Compliance with Local Financial Regulations
Binance could re-enter India, agreeing to comply with strict financial laws after a $2M fine
Binance, a leading global cryptocurrency exchange, is set to return to India after being previously banned.
After agreeing to pay a $2 million fine, the company will now comply with India’s financial regulations, such as the Prevention of Money Laundering Act and taxation rules for digital assets.
This return marks a significant shift for Binance, which previously attempted to negotiate exemptions from stringent regulations meant to safeguard India's financial system.
The acceptance of these terms underscores a strategic pivot to operate within legal boundaries.
Following the regulatory practices of other platforms, Binance is adapting to local requirements.
KuCoin has also complied, introducing a 1% tax on transactions, a standard now adopted by Binance.
Historically, Binance dominated the Indian market, holding about 90% of the estimated $4 billion in cryptocurrency assets.
However, introducing a new tax in July 2022 led to a sharp decline in local trading volumes, with many traders moving to platforms like Binance that were still accessible to Indian users.
Regulatory scrutiny increased in late 2023, when the Financial Intelligence Unit cited Binance and other exchanges for operating without proper authorization, leading to app removals from mobile stores.
The Ministry of Finance has clarified that compliance with reporting and record-keeping under PMLA is mandatory for all, irrespective of physical presence in India.
Binance’s adherence to these new compliance measures indicates its commitment to reestablish and expand its presence in the Indian cryptocurrency market securely and legally.
