Binance Eyes India Return with $2M Penalty Payment

Binance, the world’s leading cryptocurrency exchange, is gearing up to re-enter the Indian market, as reported by India’s Economic Times.

Sources familiar with the situation indicate that Binance plans to settle a $2 million fine to facilitate this return.

The exchange aims to revamp its operations in South Asia by obtaining full registration with India’s Financial Intelligence Unit. This unit oversees digital asset trading within the country and ensures compliance with local regulations, including those related to money laundering and taxation.

In response to the Indian government’s crackdown in January, which led to the blocking of nine crypto websites due to non-compliance with regulations, Binance is taking steps to rectify its position. The aftermath also saw Apple and Google removing crypto exchange apps from their Indian stores.

In January, Binance South Asia’s X account stated, “We remain committed to complying with local regulations and engaging with regulators globally to maintain our service availability.”

Before the ban, Binance held approximately 90% of Indian investors’ crypto assets, valued at an estimated $4 billion, according to the Economic Times.

Its market dominance was partly due to its previous non-compliance with local tax regulations, allowing users to trade crypto without paying the mandatory 1% tax deducted at source.

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