Binance Plans Return to India with $2 Million Settlement and Regulatory Compliance Efforts

by bollywoodfever · 17/04/2024

Binance is reportedly taking steps to re-establish its presence in India by settling a $2 million penalty, as per a report by India’s Economic Times, citing informed sources.

Binance US Unsuccessful in Providing Accounting Statements Even After Extension

The cryptocurrency exchange giant is looking to restructure its operations in South Asia to secure full registration with India’s Financial Intelligence Unit, which is in charge of monitoring the local digital assets market. Binance is actively working towards adherence to all relevant local regulations, including those pertaining to anti-money laundering and taxation.

In an aggressive regulatory move, the Indian authorities had previously blocked access to nine cryptocurrency-related websites due to non-compliance with local laws. Subsequently, major digital storefronts like those of Apple and Google followed suit, removing several cryptocurrency exchange applications from their platforms in the region.

In response to the regulatory actions, a statement from Binance’s South Asia division in January emphasized the exchange’s dedication to regulatory compliance. “We remain committed to complying with local regulations and maintaining dialogue with regulators worldwide to ensure the continued availability of our services,” the statement read.

Before facing regulatory hurdles, Binance was a major player in the Indian market, holding about 90% of Indian investors’ cryptocurrency assets, which are valued at an estimated $4 billion. The Economic Times report suggested that Binance’s market share was partly due to the platform’s previous lax approach to local taxation requirements, which enabled users to engage in cryptocurrency trading without being subject to the mandatory 1% tax deducted at source.

Also Read, ECB Officials Support June Rate Cut Amid Uncertainties, Differ on Future Monetary Policy