Binance In India May Reopen With $2 Million Fine

Key Points:

• Binance will return to India, pay a $2 million fine, and comply with regulations.
• Previous non-compliance led to a ban, impacting the Indian crypto market.
• The re-entry of Binance in India is expected to shake up Indian market dynamics amid the crypto boom.

Binance, a major cryptocurrency exchange, is gearing up to re-enter the Indian market after a ban earlier this year. According to reports from The Economic Times, the exchange plans to pay a hefty fine of approximately $2 million as part of its return strategy.

Binance Set to Re-Enter Indian Crypto Market with Compliance Measures

The return of Binance in India comes with a commitment to operate as an entity registered with the Treasury Department’s Financial Intelligence Unit (FIU). It pledges to adhere to all relevant regulations, including the Prevention of Money Laundering Act (PMLA) and the Virtual Digital Assets (VDA) tax framework. Previously, Binance faced criticism for non-compliance with these laws.

The Indian government banned Binance and eight other offshore cryptocurrency platforms due to their failure to comply with FIU and PMLA guidelines. Before the ban, Binance held a significant market share, accounting for nearly 90% of Indian nationals’ estimated $4 billion crypto holdings.

The Return of Binance in India Comes Amid Cryptocurrency Surge

With its return, Binance aims to regain its dominance in the Indian market, which it lost to local exchanges like CoinDCX and WazirX post-ban. Market leaders anticipate that Binance’s re-entry could disrupt the market dynamics due to its advanced technology and higher liquidity compared to Indian exchanges.

Binance will be the second offshore exchange to register in India, following Kucoin’s announcement of FIU compliance. The exchange plans to introduce localized payment solutions, establish a dedicated team in India, and invest in the country’s blockchain ecosystem.

The re-entry of Binance in India coincides with a bullish period for popular cryptocurrencies like Bitcoin and Ethereum, which are reaching all-time highs. Meanwhile, financial regulators in various countries, including the US, the UK, and Hong Kong, are increasingly approving crypto-backed securities for trade in traditional financial markets.