Binance, the world’s largest cryptocurrency exchange, is set to re-enter the Indian market after agreeing to pay a $2 million fine and registering as a Financial Intelligence Unit (FIU) firm, according to recent reports.
The move comes after Binance, along with nine other crypto exchanges, was removed from the Apple App Store in India and effectively banned following compliance show cause notices from India’s Financial Intelligence Unit.
Other exchanges that received notices at the time include OKX, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.
By paying the fine and registering as an FIU firm, Binance aims to comply with India’s financial regulations and laws, including the Prevention of Money Laundering Act (PML Act) and the Virtual Digital Assets (VDA) taxation framework.
“It’s unfortunate that it took Binance more than two years to realise there is no room for negotiations and no global powerhouse can command special treatment, especially at the cost of exposing the country’s financial system to vulnerabilities,” a source commented on the situation.
Binance has faced regulatory challenges in multiple countries, with allegations of money laundering and inappropriate financial practices. As a result, CEO Changpeng Zhao stepped down, paving the way for a new leadership team as part of the company’s rebranding efforts.
Currently, Binance is also embroiled in a dispute with the Nigerian government over allegations of currency manipulation and money laundering. Two Binance executives have been detained in Nigeria and charged in Nigerian courts on these counts.
Prior to its temporary ban, Binance was the most used crypto exchange in India, boasting over 500,000 app downloads as of September 2022. The exchange’s re-entry into the Indian market is expected to reignite competition and reshape the cryptocurrency landscape in the country.
