Binance’s Return to India: Paying $2 Million Penalty for Non-Compliance

Binance, the world’s largest crypto exchange, is making a comeback in India after a four-month ban. The exchange was among several foreign cryptocurrency exchanges that were kicked out of the Apple Store in India earlier this year for operating illegally in the country. Now, Binance is looking to return by paying a hefty penalty of $2 million for non-compliance with local tax laws.

Before the ban, Binance dominated the Indian crypto trading market, accounting for over 90% of trading volumes estimated at $4 billion. Indian customers turned to overseas exchanges like Binance to avoid high tax impositions, prompting the government to crack down on unregistered exchanges.

After realizing the need to comply with regulations, Binance has decided to pay the fine and become an FIU-compliant company in India. The exchange aims to adhere to all local money laundering and taxation laws to ensure a smooth operation in the country.

This move by Binance comes after KuCoin, another global exchange, also returned to India post-ban by registering with the FIU. However, not all exchanges have been able to navigate the regulatory hurdles in India, with OKX deciding to cease its services completely in the country.

The return of Binance to India signals a shift towards compliance and regulation in the crypto industry. With the exchange’s commitment to following local laws, Indian customers can once again access Binance’s services with confidence.