Binance Plans Return to Indian Market with $2M Fine: Report
Crypto exchange Binance is reportedly exploring the possibility of re-entering the Indian market after being banned in late 2023. According to the Economic Times, Binance will have to pay a penalty of approximately $2 million as part of its return. However, the exact amount has not been confirmed. To regain access to the Indian market, Binance would need to register with the Financial Intelligence Unit (FIU) of the finance ministry, which oversees virtual asset commerce. The exchange is committed to complying with all relevant laws, including the Prevention of Money Laundering Act and the crypto taxation framework, after previously neglecting these regulations. The FIU had previously advised the Ministry of Electronics and Information Technology to restrict access to the web addresses of nine crypto exchanges, including Binance. The Finance Ministry clarified that compliance requirements do not necessitate physical presence within India, as the regulatory framework applies to all entities involved in virtual asset transactions. India has been actively integrating the crypto sector into its financial system and has introduced regulations mandating Know Your Customer (KYC) data collection from crypto companies. Binance held a dominant market share in India, accounting for nearly 90% of the estimated $4 billion in cryptocurrency holdings among Indian citizens before its ban. However, its non-compliance with Indian tax regulations led to a significant migration of users to offshore crypto exchanges, including Binance.