Binance, the biggest cryptocurrency exchange globally, is getting ready to make a comeback in the Indian market. This move comes after they agreed to settle a $2 million fine.
The $2 million fine serves as a resolution to compliance issues that caused Binance to be removed from the Apple Store in India earlier this year. This action followed show cause notices from India’s Financial Intelligence Unit (FIU).
Binance and Other Exchanges Face Regulatory Scrutiny in India
Earlier this year, Binance, alongside major exchanges like OKX, KuCoin, and Huobi, received show cause notices from India’s Financial Intelligence Unit (FIU) as part of a broader crackdown on non-compliant crypto exchanges.
In response to the regulatory pressure, Binance has agreed to pay a $2 million fine and is working to re-establish itself as an FIU-registered entity in India. This involves ensuring full compliance with local regulations, including anti-money laundering and taxation laws.
Binance’s move marks a significant shift in the Indian crypto market, where it previously held a dominant position, commanding around 90% market share and managing an estimated $4 billion in crypto assets from Indian investors. Reports suggest that its prior dominance may have been influenced by non-compliance with local tax laws.
Binance’s efforts to enhance regulatory compliance in India reflect a broader global trend, as the exchange faces increased scrutiny from financial authorities worldwide. This trend underscores the importance of compliance in the rapidly evolving cryptocurrency landscape.
In January, the Indian government blocked nine crypto websites, including Binance and KuCoin, under the Prevention of Money Laundering Act (PMLA) for operating without compliance. Subsequently, both Apple and Google removed several crypto exchange apps from their Indian app stores in response to government actions.
Indian Government Targets Crypto Exchanges
The catalyst for the ban on several crypto exchanges in India was a notice issued by the Indian Ministry of Finance’s Financial Intelligence Unit (FIU) in December. The notice targeted prominent exchanges like Binance, Kraken, Kucoin, Bittrex, Gate.io, Bitstamp, Bitfinex, and MEXC Global, alleging their illegal operation in India and non-compliance with the Prevention of Money Laundering Act.
The FIU recommended to the Ministry of Electronics and Information Technology to block the websites of these exchanges due to their non-compliance with regulations. Despite Apple’s App Store ban, these crypto exchange apps remain accessible to users in India through Google’s Play Store and their respective web versions.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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