Binance Back in India: Exchange Registers with FIU, Faces $86 Million GST Demand

Binance Back in India- Binance and KuCoin Navigate Indian Regulatory Challenges

Binance Back in India- Crypto giant Binance has officially registered with India’s Financial Intelligence Unit (FIU) as a reporting entity, following the settlement of a $2.25 million fine earlier this year. This registration marks a significant step for Binance, as it resumes operations in a key market after a brief ban.

In a statement shared with Decrypt, Binance CEO Richard Teng hailed the registration as an important milestone, emphasizing that this move allows Binance to tailor its services specifically for Indian users while adhering to local regulations.

Through a recent blog post, Binance announced that its app and website are now fully accessible to Indian users, highlighting the exchange’s commitment to a world-class compliance program. Teng reinforced this commitment, stating, Our focus on stringent regulation is at the core of our business strategy. It’s about creating a secure, transparent, and efficient environment for all.

Binance’s comeback in India follows a tumultuous period in which the exchange, along with eight others, faced an effective ban in December 2023. The FIU had accused these platforms of operating illegally by failing to register and comply with India’s anti-money laundering (AML) and anti-terrorist financing laws.

In June, the FIU imposed a fine of 188.2 million rupees ($2.25 million) on Binance for failing to meet its statutory obligations under the Prevention of Money Laundering Act (PMLA). The regulatory agency noted that Binance had received specific directions to enhance its compliance with these rules.

Following the settlement of its fine, Binance, alongside fellow exchange KuCoin, received approval from the FIU to resume operations. KuCoin had paid a smaller fine of $41,000 and restarted its services in May.

Despite its return, Binance still faces significant challenges in India. The country’s tax authorities have recently issued a notice demanding a substantial Goods and Services Tax (GST) of $86 million from the exchange, further testing Binance’s resilience in a complex regulatory environment.