Binance to Return to India with $2 Million Penalty: Report
Binance, the world’s largest cryptocurrency exchange, is making a comeback in India after facing regulatory hurdles. According to sources cited by India’s Economic Times, the exchange is set to pay a $2 million penalty as part of its efforts to re-enter the Indian market.
The move comes after the Indian government cracked down on crypto operations earlier this year, blocking nine websites for non-compliance with local regulations. This led to the removal of crypto exchange apps from Apple and Google stores in the region.
Binance is reportedly working on reforming its South Asian entity to be fully registered with India’s Financial Intelligence Unit, ensuring compliance with local money laundering and taxation laws. Prior to the ban, Binance held a significant market share in India, accounting for around 90% of the crypto holdings of Indian investors.
“We remain committed to complying with local regulations and maintaining dialogue with regulators worldwide to ensure the continued availability of our services,” said Binance South Asia’s X account in January.
The exchange’s dominance in the market was partly attributed to its non-compliance with local tax laws, allowing users to trade crypto without paying the required 1% tax deducted at source. Binance and the FIU have yet to confirm the details of the planned return to India.
As the crypto industry continues to evolve, Binance’s comeback in India signals a renewed effort to navigate regulatory challenges and provide services to users in the region. Stay tuned for more updates on this developing story.
