Binance Set to Restart Its Operations in India Following a $2 Million Penalty
Binance, the largest cryptocurrency exchange in the world, is preparing to make a triumphant comeback in India. The company is reportedly willing to pay a substantial $2 million fine as it seeks to re-enter the Indian market while adhering to strict compliance with the Prevention of Money Laundering Act (PMLA) and VDA regulations. This move signifies a significant shift towards following rules and signifies a milestone in the cryptocurrency industry’s journey towards maturity.
Binance’s return to India comes after the Indian government cracked down on cryptocurrency earlier this year, resulting in the blocking of nine cryptocurrency websites for non-compliance with local regulations. Tech giants Apple and Google also removed crypto exchange apps from their platforms in response. However, Binance is determined to play by the book and has committed to adhering to all relevant regulations as it prepares for its comeback.
Representatives from Binance South Asia’s X account have expressed their dedication to engaging with regulators and ensuring that their services remain accessible while meeting regulatory standards.
Before the ban, Binance dominated India’s $4 billion crypto market, attracting numerous Indian crypto enthusiasts. Its popularity was driven by its lenient stance on tax compliance, allowing users to trade without concern for taxes. However, Binance’s failure to follow tax laws enabled investors to avoid the mandatory 1% tax deduction at source (TDS) on registered exchanges. To pave the way for its potential return within regulatory boundaries, Binance aims to follow Kucoin’s lead in formalizing its presence in India.
Experts believe that Binance’s comeback could disrupt the market by introducing advanced technologies and increased capital flow compared to local exchanges. This resurgence coincides with the surging values of flagship cryptocurrencies like Bitcoin and Ethereum, which have reached all-time highs. Binance’s strategy involves streamlining operations by introducing local payment options, establishing dedicated teams in India, and investing in the country’s growing blockchain ecosystem.
With a strong commitment to regulatory compliance, Binance envisions reintroducing its services in India and reshaping the dynamics of the market.