Binance, the world’s largest digital assets exchange and blockchain ecosystem, is looking to re-enter the Indian market by paying a $2 million fine and registering with the country’s Financial Intelligence Unit (FIU).
According to a report by the Economic Times, Binance seems ready to comply with India’s regulations for foreign crypto exchange operations. This involves paying the stipulated fine of $2 million for previously operating without being registered with the country’s FIU.
After paying the substantial fine, Binance will re-enter the Indian market as an FIU-registered company, complying with the nation’s financial regulations and laws.
” It is regrettable that (Binance) took over two years to recognize that there’s no room for negotiations, and no global powerhouse can demand special treatment, particularly if it risks exposing the country’s financial system to vulnerabilities,” a source said, as revealed by the ET.
Going forward, Binance will ensure compliance with the Prevention of Money Laundering Act (PML Act) and the Virtual Digital Assets (VDA) taxation framework in India.
Read Also: Binance Exits Russia, Sells Subsidiary to CommEX
Why Binance left India
The move to relaunch in India comes after Binance and nine other crypto exchanges were removed from the country’s Apple App Store in January 2024. The other firms affected include; OKX, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.
The removal from India’s Apple Store occurred after these exchanges received a non-compliance notice from the Indian Ministry of Finance’s Financial Intelligence Unit (FIU) on December 28, 2023.
The notice indicated that these exchanges were unregistered with the FIU, recommending that they register as “reporting entities” and file statements with the income tax department to continue offering services to Indian users. Moreover, a fine of some $2 million was attached.
Notably, Binance was the most widely used crypto exchange in India with over 500,000 application downloads as of September 2022 before the temporary ban.
Rising compliance issues
The exchange is also facing scrutiny from multiple countries, including Nigeria over claims that its platform facilitated money laundering and other illicit financial activities.
As earlier reported, two Binance executives were arrested and detained in Nigeria on these charges, with one later escaping custody. These developments culminated in the exchange ceasing all Nigeria Naira services on its platform.
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