Following a ban in January 2024, cryptocurrency exchange Binance is set to resume operations in India. The company will achieve this by registering with the Financial Intelligence Unit (FIU), a government body responsible for overseeing virtual digital asset (VDA) transactions.
This registration signifies Binance’s commitment to complying with all relevant Indian regulations, including the Prevention of Money Laundering Act (PMLA) and the VDA taxation framework. These regulations were reportedly not strictly adhered to by Binance in the past.
Indian officials have maintained a consistent stance on cryptocurrency exchanges operating within the country – full compliance with all laws is mandatory. The delay by Binance in recognizing this requirement is viewed as unfortunate, particularly since it could have exposed India’s financial system to vulnerabilities.
The exact amount of the penalty imposed on Binance, which has been reported as $2 million, is yet to be confirmed by authorities. Binance has also not responded to inquiries as of this publication.
Binance is the world’s leading cryptocurrency exchange by both asset holdings and daily trading volume. According to CoinMarketCap, the platform processed $22 billion in trades within the past 24 hours (ending 7:00 pm IST on April 17th, 2024). This represents a significant share (25%) of the global cryptocurrency trading volume.
In January 2024, Binance was among nine offshore cryptocurrency platforms banned from operating in India through web and mobile applications. The ban was a consequence of these platforms’ non-compliance with FIU and PMLA regulations.
