Binance, the world’s largest cryptocurrency exchange, has resumed operations in India after a seven-month ban due to its failure to register with the Financial Intelligence Unit of India (FIU-IND). The exchange announced the relaunch of its website and app on August 15, marking a significant step in its global regulatory compliance efforts. This milestone is the 19th regulatory approval Binance has secured worldwide, underscoring its commitment to adhering to anti-money laundering (AML) standards.
A Strategic Move in a Key Market
Richard Teng, CEO of Binance, emphasized the importance of this regulatory approval, noting the growing significance of the Indian virtual digital assets (VDA) market. “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 to the needs of Indian users. It is a privilege to extend the reach of our cutting-edge platform to this thriving market, supporting India’s continued VDA evolution,” Teng stated.
India’s leadership in grassroots crypto adoption, highlighted by Chainalysis’ 2023 Global Crypto Adoption Index, makes this re-entry into the market especially crucial for Binance. The country ranks among the top five globally in terms of transaction volume across various crypto platforms, reflecting the vast potential of the Indian market.
Also Read: Binance Plans Return to India by Settling $2M Fine
Compliance Challenges and Penalties
The return to India follows a penalty of ₹18.82 crore imposed by FIU-IND on June 19 for Binance’s previous non-compliance with local AML regulations. While Binance’s recent statement did not specify whether this fine has been settled, it highlights the exchange’s renewed focus on meeting local legal requirements.
Binance is not the only exchange facing regulatory scrutiny in India. Competitor KuCoin, for instance, paid a penalty of ₹34.5 lakh to become fully operational in March 2023. Conversely, OKX decided to exit the Indian market by April 30, following similar regulatory challenges.
Blocking Offshore Exchanges
The clampdown on non-compliant offshore exchanges began in December 2023, when the Indian government identified nine exchanges, including Binance, KuCoin, and OKX, that were not registered with FIU-IND. The subsequent order to block the URLs of these platforms and remove their apps from Apple and Google stores in January effectively shut down their operations in the country.
With its recent compliance efforts, Binance is poised to re-establish its presence in India, a market that remains critical for global crypto adoption.
