- Binance, banned by the Indian government earlier this year, is reportedly set to re-enter the market by paying a nearly $2 million fine
- Sources cited by the Economic Times reveal Binance’s plan to return as a registered firm with the Financial Intelligence Unit (FIU)
- Binance’s return underscores its commitment to compliance with Indian regulations, including the Prevention of Money Laundering Act (PMLA) and virtual digital asset taxation
After facing a ban from the Indian government earlier this year, Binance is reportedly preparing to re-enter the Indian market by paying a fine of nearly $2 million. According to sources cited in a report by the Economic Times, Binance will return as a registered firm with the Financial Intelligence Unit (FIU), which oversees transactions involving virtual digital assets (VDAs). The move signifies Binance’s commitment to compliance with Indian regulations, including the Prevention of Money Laundering Act (PMLA) and the taxation framework for virtual digital assets (VDAs).
Binance One of Nine Blocked
Binance was among nine offshore cryptocurrency platforms barred from operating in India earlier this year, following their failure to comply with FIU and PMLA regulations. In December, Binance joined Kraken, KuCoin, and Huobi in being issued with compliance show-cause notices and requests for their URLs to be blocked, requests that were granted two weeks later.
The Indian government has consistently emphasized the need for international cryptocurrency exchanges to adhere to domestic regulations to operate within the country, alleging that the nine exchanges were flouting these rules. A company spokesperson confirmed to the Economic Times that Binance will adhere to all relevant regulations upon its return to the Indian market as well as paying a $2 million fine.
KuCoin Already Reinstated
A Finance Ministry official told the Economic Times that its dealings with Binance began two years ago and that it was “unfortunate” that the exchange took so long “realize there is no room for negotiations, and (that) no global powerhouse can command special treatment, especially at the cost of exposing the country’s financial system to vulnerabilities.”
There is no timetable in place for Binance’s return to India (its apps are still barred from Indian app stores), but if everything goes through as expected, it will follow KuCoin in being allowed back into the fold, which announced FIU compliance last month.
