- Binance has made regulatory progress in India.
- The exchange faced sanctions from Indian authorities earlier this year.
- Regulatory standards in India are tightening.
Over the past few years, crypto exchange Binance has faced its fair share of regulatory woes, leading to sanctions and withdrawals from key regions. In January 2024, Binance and eight other exchanges came under India’s regulatory ire, resulting in the suspension of services within the market.
After seven months of working to regain the country’s approval though, the exchange has made significant progress.
Binance Restores Operations in India
Crypto exchange Binance has re-established its presence in India. In a statement on Thursday, August 15, 2024, the exchange revealed that it has registered with India’s Financial Intelligence Unit (FIU-IND) as a reporting entity.
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The exchange’s announcement follows previous speculation in April that it would make a return, with suggestions that this might involve a $2 million penalty settlement.
As part of its regulatory obligations, Binance will implement robust anti-money laundering (AML) policies and controls, alongside a comprehensive framework to combat terror financing within the region.
Binance CEO Richard Teng commented on the re-entry into India, stating, “Our registration with the FIU-IND marks an important milestone in Binance’s journey. Recognizing the vitality and potential of the Indian VDA market, this alignment with Indian regulations allows us to tailor our services to the needs of Indian users.”
The exchange’s return has also restored its website and app services for users within the region, positioning it as one of the few registered exchanges in the country.
India’s Stricter Oversight of Crypto Exchanges
The Financial Intelligence Unit (FIU-IND), the regulatory body responsible for overseeing virtual and digital assets in India, has adopted a stringent stance over the last year, targeting non-compliant entities operating within the region without hesitation.
Earlier this year, the FIU-IND mandated that all crypto exchanges facilitating cryptocurrency transactions or transfers must register with it, regardless of whether they have a physical presence in India.
This increased pressure has led to the exit of several crypto service providers, including OKX. Restrictions on the services of other exchanges like Kraken and Bitfinex have also been imposed.
Recently, crypto exchange Bitget similarly suffered the restriction of its services to users within India, prompting efforts to secure a regulatory foothold with authorities.
On the Flipside
- Binance was also reportedly fined $86 million by India’s Ahmedabad zonal unit for the DCGI earlier this month.
- Binance is facing regulatory challenges in Nigeria, where one of its executives is suffering deteriorating health after being detained for six months.
- In April 2024, KuCoin became India’s first compliant crypto exchange.
Why This Matters
With India being one of the top 5 countries by market trading volume, Binance’s return secures its position in the key market and could positively impact its operations going forward.
Read this article about Binance’s crackdown on users engaging in account sales:
Binance Users Are Selling Accounts, Exchange Is Cracking Down
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