Binance, the world’s largest cryptocurrency exchange, is reportedly preparing to re-enter the Indian market by paying a $2 million penalty, as reported by India’s Economic Times, citing sources familiar with the situation.
The exchange is said to be restructuring its South Asian entity to achieve full registration with India’s Financial Intelligence Unit (FIU), which oversees digital asset trading in the country. Binance aims to ensure compliance with all relevant regulations, including local money laundering and taxation laws.
Earlier this year, the Indian government took action against nine cryptocurrency websites for operating illegally without proper compliance with local regulations. Subsequently, Apple and Google stores removed crypto exchange apps from their platforms in the region.
“We remain committed to complying with local regulations and maintaining dialogue with regulators worldwide to ensure the continued availability of our services,” stated Binance South Asia’s X account in January.
Before the ban, Binance reportedly accounted for approximately 90% of Indian investors’ crypto holdings, estimated at $4 billion. Its previous dominance in the market was attributed to its non-compliance with local tax laws, allowing users to trade crypto without paying a 1% tax deducted at source.
Binance and the FIU have not responded to The Block’s request for confirmation and clarification regarding the details of Binance’s planned return to India.
The reported efforts by Binance to re-enter the Indian market underscore its commitment to regulatory compliance and its determination to engage with authorities to ensure the availability of its services to users worldwide.