Key Points
- Binance, the world’s largest cryptocurrency exchange, has restarted services in India after registering with the Financial Intelligence Unit (FIU-IND), ending a seven-month ban.
- This marks Binance’s 19th global regulatory milestone, highlighting the exchange’s efforts to comply with local regulations in various markets.
Binance Overcomes Regulatory Hurdles in India
Binance, the global leader in cryptocurrency exchanges, has successfully resumed operations in India after a seven-month hiatus. The exchange announced on August 15 that its website and mobile applications are now available to Indian users, following its registration as a reporting entity with India’s Financial Intelligence Unit (FIU-IND).
The regulatory halt began in late 2023 when the FIU blocked nearly a dozen foreign crypto exchange services, including Binance, for operating “illegally” in the country. This action came after local crypto exchanges complained to the Indian Ministry of Finance about losing business to noncompliant foreign competitors.
Compliance and Market Potential
Richard Teng, CEO of Binance, emphasized the significance of this development, stating, “Our registration with the FIU-IND marks an important milestone in Binance’s journey. Recognizing the vitality and potential of the Indian virtual digital asset market, this alignment with Indian regulations allows us to tailor our services to the needs of Indian users.”
By registering with the FIU-IND, Binance commits to implementing Anti-Money Laundering (AML) policies and a framework for combating the financing of terrorism (CFT) in the Indian market. This move aligns with Binance’s global strategy of regulatory compliance, which the company views as fundamental to fostering a secure, transparent, and efficient environment for cryptocurrency trading.
Challenges in the Indian Crypto Landscape
Despite India’s importance as a key overseas market for global tech giants, its cryptocurrency ecosystem remains underdeveloped. The Reserve Bank of India has exerted significant pressure on banks to distance themselves from cryptocurrency firms over the past five years. Additionally, the government’s implementation of stringent tax policies has considerably diminished local enthusiasm for digital assets.
These regulatory and fiscal obstacles have effectively stunted the growth of India’s crypto ecosystem. The recent hack at WazirX, a local exchange and former Binance partner, where nearly half its reserves were lost, dealt another blow to local entrepreneurs’ efforts to advocate for a more crypto-friendly regulatory environment in the country.
Binance’s Global Regulatory Journey
Binance’s registration in India is part of a broader effort to secure regulatory approval in various jurisdictions. The exchange recently obtained a Virtual Asset Service Provider (VASP) license in Dubai, further solidifying its position in the global cryptocurrency market.
As Binance continues to navigate the complex regulatory landscape of the cryptocurrency industry, its return to India represents a significant step forward. The move not only allows the exchange to tap into one of the world’s largest potential markets for digital assets but also demonstrates its commitment to working within regulatory frameworks to promote the growth and adoption of cryptocurrencies.
