Crypto exchange Binance is set to return to India after months away from the nation.
Indian regulators accused Binance of failing to comply with local policies. As a result, Binance will pay a $2 million fine. Let’s discover more about this important news for Binance.
Binance Returns to India
Indian regulators acted against crypto exchanges such as OKX, Kucoin, and Binance. India’s Financial Intelligence Unit (FIU) claimed these exchanges were non-compliant with local rules. Binance looks set to re-enter the country’s market as it has reportedly agreed to a fine. The settlement grants Binance a new status. The exchange will operate as a registered entity.
.@binance could make a comeback in India by paying a $2 million fine, according to a report.https://t.co/J5fRtXggHT
— CoinDesk (@CoinDesk) April 18, 2024
However, Binance’s delay in compliance drew criticism. A source noted that the exchange’s compliance with regulations is important to India’s financial system.
India and its Strict Crypto Rules
Binance held a strong position within the Indian market after its entrance. The exchange reportedly accounted for over 90% of the trading volume for the Asian giant. Like most countries, Indians view cryptocurrency as a way to battle their poor economy and inflation. Interestingly, locals turned to foreign exchanges like Binance to evade heavy tax burdens. Indian laws demand crypto users to fork out huge amounts in tax.
Good news for Crypto India! 🇮🇳#Binance is coming back to India, paying a $2 million penalty, and seeking compliance with PMLA! pic.twitter.com/iivm4oySP4
— IshitaPandey.eth (@IshitaaPandey) April 18, 2024
As expected, the Indian government reacted swiftly to the use of foreign crypto exchanges. They restricted crypto platforms without FIU registration. Now, with FIU registration, these exchanges must comply with Indian regulations.
At first, most people believed the exchange would struggle to accept these terms. The exchange has faced heavy regulatory scrutiny in most countries. Interestingly, some crypto exchanges are already implementing the new tax policies.
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