Binance seeks to re-enter India by paying $2 million in penalty: report
Quick Take
- Binance is looking to return to the Indian market after being banned from the local government in January, according to a local media report.
- It will reportedly return as a registered entity that is compliant with local anti-money laundering laws and tax rules.
Binance, the world’s largest cryptocurrency exchange, is preparing to return to India by paying a $2 million penalty, India’s Economic Times reported, citing sources with knowledge of the matter.
The exchange reportedly aims to reform its South Asian entity to become fully registered with India’s Financial Intelligence Unit, which oversees the local trade of digital assets, and is working to comply with all applicable regulations, including local money laundering and taxation laws.
In January, the Indian government blocked nine crypto websites for illegal operations without proper compliance with local regulations. Following the government action, Apple and Google stores removed crypto exchange apps from the region.
“We remain committed to complying with local regulations and maintaining dialogue with regulators worldwide to ensure the continued availability of our services," Binance South Asia’s X account said in January.
Prior to the ban, Binance accounted for around 90% of the crypto holdings of Indian investors, estimated at $4 billion, according to the Economic Times. Its previous dominance over the market could be attributed to its non-compliance with local tax laws, allowing users to trade crypto without paying 1% tax deducted at source, the report said.
Binance and the FIU did not immediately respond to The Block’s request to confirm and clarify the details of the planned return to India.
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