After a seven-month hiatus, cryptocurrency exchange giant Binance has returned to the Indian market, with its website and mobile apps now available on Google Play Store and Apple App Store. This comeback follows a period of regulatory friction with the Indian government, highlighting the evolving landscape of crypto regulation in the world’s second-most populous nation.
Non-compliance Leads To Ban
Binance’s initial absence stemmed from non-compliance with the guidelines established by India’s Financial Intelligence Unit (FIU-IND). In January 2024, the FIU, tasked with combating financial crimes, barred Binance along with eight other crypto exchanges for failing to register as required by law. This move underscored the Indian government’s stance on ensuring anti-money laundering (AML) and counter-terrorism financing (CFT) measures within the crypto ecosystem.
Registration And Re-entry
Reports in April hinted at a potential Binance comeback after the exchange allegedly agreed to pay a $2.25 million fine for non-compliance. While Binance has now confirmed its registration with the FIU-IND, there’s no official word on the fine payment.
Binance CEO Richard Teng expressed optimism about the re-entry, acknowledging the “vitality and potential” of India’s digital asset market. He emphasized that this “alignment with Indian regulations” allows Binance to tailor services for Indian users.
This registration acts as Binance’s 19th global regulatory milestone, signifying the exchange’s growing focus on compliance. Notably, India ranks among the top five crypto markets by estimated transaction volume, making it a lucrative territory for Binance.
By complying with Indian regulations, Binance will implement robust AML and CFT frameworks within the Indian market. “Our commitment to stringent regulation forms a fundamental part of our business strategy,” stated Teng, reiterating Binance’s aim of fostering a secure and transparent crypto environment.
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Binance’s Regulatory Journey
This move follows Binance’s recent acquisition of a virtual asset service provider (VASP) license in Dubai. The Dubai license was reportedly secured after co-founder Changpeng Zhao relinquished his voting power in the exchange’s local entity.
Binance’s return to India signifies a significant development for the country’s crypto landscape. With a major exchange aligning with regulations, it remains to be seen how other crypto players will navigate the evolving regulatory environment in India.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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