Binance’s India Return: 2M Dollars Fine Ends Compliance Woes

Crypto News- After a four-month hiatus, Binance, the prominent crypto exchange, is gearing up to make its comeback in India. Reports from The Economic Times indicate that the exchange is set to return after resolving a compliance issue by paying a hefty $2-million fine.

Binance’s India Return: 2M Dollars Fine Ends Compliance Woes

This move comes as a second wind for overseas exchanges in India, with KuCoin being the first to re-enter the market post the ban imposed by India’s financial regulatory body. The ban, a response to non-compliance with the Anti-Money Laundering Act, led to the blocking of access to nine foreign crypto exchanges, including Binance.

Binance’s Reign in Indian Crypto Trading Sparks Government Response

Binance’s dominance in the Indian crypto trading scene was evident, capturing over 90% of the market before the ban earlier this year. Indian users sought refuge in foreign exchanges like Binance to evade steep tax regulations, prompting the government crackdown.

With the mandate for FIU registration, foreign exchanges must now operate under the same scrutiny as their Indian counterparts. KuCoin has already initiated a 1% tax deduction at source (TDS), setting the precedent for others eyeing entry into the Indian market.

Delays in Compliance: Binance’s Lesson in Regulatory Adherence

The delay in Binance’s compliance realization drew criticism, highlighting the importance of adhering to regulations without exception. The move towards registration signifies a shift towards accountability and stability in the Indian crypto landscape.

Binance’s involvement in India dates back to its purported acquisition of local exchange WazirX in 2019. However, the exchange clarified that it merely provided wallet services, distancing itself from operational responsibilities.

While Binance and KuCoin opt for FIU registration, OKX chose a different path, ceasing operations entirely due to regulatory pressures.

The evolving regulatory landscape underscores the complexities of navigating the crypto sphere in India. As stakeholders await Binance’s official statement, the industry remains poised for further developments.