- Binance has reopened in India after resolving regulatory issues that forced its closure seven months ago
- The exchange has registered with India’s Financial Intelligence Unit as a reporting entity
- Binance has obtained its 19th regulatory license globally, calling this development another “regulatory milestone”
Binance has reopened in India, seven months after regulatory issues forced it offline. The exchange has registered with India’s Financial Intelligence Unit (FIU) as a reporting entity, allowing it to open itself up to customers again after settling a $2.25 million fine with the agency earlier in the year. Binance called this development another “regulatory milestone,” making it the 19th such regulatory license it has obtained.
Bye-nance
In December 2023, Binance and eight other cryptocurrency exchanges were effectively banned from operating in India following accusations from the Financial Intelligence Unit (FIU). The FIU charged these exchanges with operating illegally by failing to register with the agency and not adhering to the country’s stringent anti-money laundering (AML) and anti-terrorist financing regulations.
The regulatory scrutiny intensified in June when the FIU imposed a significant fine of 188.2 million rupees (approximately $2.25 million) on Binance. The fine was levied for the exchange’s failure to meet its “statutory obligations” under the Prevention of Money Laundering Act (PMLA) in India.
The FIU’s order emphasized that Binance had been given “specific directions” to ensure compliance with the nation’s rules aimed at preventing money laundering and terrorist financing activities.
There were suggestions four months ago that Binance was on the verge of relaunching in India, which the company confirmed in a blog post, in which it celebrated the awarding of the license:
The registration with the FIU underscores Binance’s commitment to compliance with anti-money laundering (AML) standards in India as well as any other jurisdiction it operates in. This step is a testament to Binance’s dedication to fostering a secure, transparent, and efficient ecosystem, aligning with the company’s global standards.
“Commitment to Compliance”
Despite these challenges, Binance, along with another exchange, KuCoin, received conditional approval from the FIU to resume operations in May 2024. This approval was granted after both companies agreed to settle their fines.
KuCoin, which faced a comparatively smaller fine of $41,000, resumed its operations in the same month after settling its dues.
However, Binance’s regulatory troubles in India did not end with the FIU fine. The company now faces additional pressure from India’s tax authorities, who have issued a notice demanding a Goods and Services Tax payment of $86 million.
In response to these developments, a Binance spokesperson stated that the exchange is “cooperating” with Indian authorities and remains “committed to adhering to relevant domestic legislation applicable to us.”
