Binance Poised to Resume Activities in India After Resolving $2 Million Penalty

Twitter icon  •  Published il y a 4 semaines  •  Nikolas Sargeant

Snippet: Binance, among 8 others, was banned for not following FIU and PMLA. Paying a $2M penalty, now set to return to India per The Economic Times.

Reportedly, Binance will return as an entity registered with India's Financial Intelligence Unit (FIU), responsible for overseeing the trade in virtual digital assets (VDA). The exchange pledges to adhere to all relevant regulations, including the Prevention of Money Laundering Act (PMLA) and the VDA taxation framework.

As the world's largest cryptocurrency exchange by asset holdings and daily trade volume, Binance's comeback marks a significant development. Data from CoinMarketCap indicates that Binance recorded a trade volume of $22 billion in the past 24 hours, constituting 25% of the global volume.

The ban on Binance, implemented in January alongside eight other platforms, came as a consequence of their failure to comply with FIU and PMLA guidelines. Before the ban, Binance held sway over nearly 90% of the estimated $4 billion crypto holdings of Indian nationals. This dominance was fueled by its non-compliance with tax laws, enabling investors to trade without the 1% tax deducted at source (TDS) applicable on registered exchanges.

Following Binance's ban, a substantial portion of Indian crypto investors migrated their holdings to local exchanges like CoinDCX and WazirX. Industry insiders attributed Binance's reluctance to subject its trades to scrutiny as a key factor in retaining high-profile investments.

Binance's upcoming return signifies the second offshore exchange to register with India's FIU, following the compliance announcement by Kucoin last month, resulting in the lifting of its website ban. Market analysts anticipate that Binance's re-entry could disrupt market dynamics due to its advanced technology and larger liquidity compared to local exchanges, especially amid the soaring values of popular cryptocurrencies like bitcoin and ethereum.

In its re-entry strategy, Binance plans to offer localized payment solutions, establish a dedicated team in India, and make further investments in the country's blockchain ecosystem. While the exchange operates across more than 100 geographies, with significant operations in Seychelles, Malta, Cayman Islands, and Singapore, it does not specify a headquarters location on its official website.

Next article and Synesis One Partner to Elevate AI Model Development


Nikolas Sargeant

Nik is a content and public relations specialist with an ever-growing interest in Crypto. He has been published on several leading Crypto and blockchain based news sites. He is currently based in Spain, but hails from the Pacific Northwest in the US.