Binance, one of the world’s largest crypto exchanges, has officially re-entered the Indian market. The announcement follows Binance’s successful registration with India’s Financial Intelligence Unit (FIU-IND).
However, the crypto exchange faced challenges and hefty penalties for registering with the FIU-IND.
Indian Users Can Now Access Binance
The registration, notably Binance’s 19th global regulatory milestone, coincides with India’s 78th Independence Day. Hence, it marks a celebratory moment for both Binance and the Indian crypto community.
Richard Teng, CEO of Binance, expressed enthusiasm about the development.
“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 for Indian users,” Teng said in a press release shared with BeInCrypto.
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India’s crypto adoption is evidenced by its high ranking on Chainalysis’ 2023 Global Crypto Adoption Index. The country stood among the top five nations in terms of transaction volume across various platforms. This vibrancy positions India as a key player in the crypto industry, highlighting the strategic importance of Binance’s re-entry.
Binance’s approach in India includes implementing anti-money laundering (AML) policies and a comprehensive framework for combating the financing of terrorism (CFT).
These measures are part of a broader compliance program encompassing stringent identity verification processes. This unit is crucial in assisting law enforcement and enhancing the overall security of the VDA ecosystem.
However, the journey toward compliance has not been without its challenges.
Earlier this month, India’s Directorate General of GST Intelligence (DGGI) issued a show-cause notice to Binance. The DGGI demanded a Goods and Services Tax (GST) payment approximating $86.047 million.
The notice pertains to fees collected from Indian customers, categorizing these transactions under online information database access or retrieval (OIDAR) services. Despite Binance’s extensive market share and operations across more than 150 countries, its previous lack of registration under the Indian GST framework brought it under scrutiny by Indian tax authorities.
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Earlier this year, the FIU-IND also imposed a $2.2 million fine on Binance for failing to adhere to AML regulations, a penalty that was instrumental in enabling Binance’s registration in India. Since December 2023, Indian users have experienced restricted access to Binance’s services due to regulatory notices issued to several offshore crypto exchanges, including Binance.
The situation was further compounded as Apple removed non-compliant platforms from its App Store, and the IT Ministry blocked their websites, pushing users towards compliant Indian exchanges. Finally, with its new registration, Binance aims to offer its Indian users a fully compliant, secure, and transparent service.
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