Binance Likely to Resume Operations in India: Here’s Why

The exchange is reportedly seeking to return to the region as a complaint crypto service provider.

Gold Binance appearing in India.
Created by Kornelija Poderskytė from DailyCoin
  • Cryptocurrency exchange Binance seeks to re-establish operations in India.
  • India flagged Binance as a non-compliant exchange earlier in the year.
  • Binance remains locked in regulatory scrutiny and challenges in other regions.

The past months have been one for the books for the crypto exchange Binance, marked by regulatory challenges across various regions. From penalties and sanctions to complete oustings from major markets, the exchange has faced intense regulatory scrutiny from global financial authorities.

In January, the Indian financial authority sanctioned offshore crypto exchanges, including Binance, alleging illegal operations and failure to adhere to local regulatory requirements. Following months of service suspension, the exchange has reportedly set sights on facilitating a change.

Binance India Operations Resume?

According to the Economic Times on Thursday, April 18, Binance has set sights on a potential return to India, which is expected to be facilitated by the payment of a $2 million penalty.


Citing anonymous sources, the report emphasized that the exchange will adopt compliant measures which it had been “sloppily flouting,” such as registering with the Financial Intelligence Unit (FIU) of the Indian finance ministry. Additionally, Binance is expected to comply with applicable laws including the Prevention of Money Laundering Act (PMLA), as well as the VDA taxation framework.

It is unfortunate that it took (Binance) more than two years to 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,” the report stated, citing a familiar source.

Binance’s return to India is contingent on its successful navigation of the region’s regulatory landscape. 

Crypto Regulations in India

Regulations in crypto have become commonplace, as global financial watchdogs seek to amp up oversight on the fast-growing crypto asset class.


In India, the regulatory stance on crypto has been marked by inconsistency, with the region’s watchdog maintaining a lukewarm approach to the asset class, despite the Supreme Court’s overturn of the Reserve Bank of India’s (RBI) ban on financial institutions.

The Financial Intelligence Unit (FIU-IND), tasked with overseeing trade in virtual digital assets, has mandated that crypto exchanges facilitating exchanges or transfers of cryptocurrency must register with it. The requirement applies regardless of whether the exchanges have a physical presence in India, in accordance with the country’s Prevention of Money Laundering Act.

India’s regulatory stance has led to the exit of several crypto service providers, including OKX, and imposed restrictions on others like Kraken and Bitfinex. Beyond India’s restrictions on Binance and other exchanges, the government enforces a 30% tax on crypto income without any provision for offsetting losses.

Additionally, traders are subject to a 1% tax deducted at source (TDS) on each crypto transaction.

On the Flipside

Why This Matters

Binance’s return to India will lift the months-long ban on the exchange’s operations, and its successful navigation of the region’s regulatory standards as a compliant exchange could mark a shift in its delicate regulatory reputation, setting a positive precedent for its operations in other regions.

Binance moves to ensure asset stability. Read this to find out how:
Binance Swaps SAFU Assets to USDC to Bolster “Stability at $1B” 

Will the fourth bitcoin halving mirror past trends or set a new one? Read more: 
Bitcoin Halving Won’t Have a Big Short-Term Bang: Bitwise

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.