Binance, the world’s largest cryptocurrency exchange, has made a comeback in India after a seven-month ban imposed by the local authorities. The exchange has registered as a reporting entity with India’s Financial Intelligence Unit (FIU), which is responsible for overseeing financial transactions.
Last year, India blocked several foreign crypto exchanges, including Binance, Kraken, Kucoin, and Mexc, based on the FIU’s recommendation. The FIU stated that offshore exchanges needed to register locally to comply with the country’s anti-money laundering and counter financing of terrorism framework. Local crypto exchanges had complained to the Indian Ministry of Finance, claiming that they were losing business to noncompliant foreign exchanges.
With its registration with the FIU, Binance’s website and mobile apps are once again accessible to users in India. Binance sees this compliance as a significant milestone, as it marks their 19th regulatory achievement. Richard Teng, CEO of Binance, expressed his excitement about the opportunity to serve Indian users and support the country’s evolving virtual asset market.
Despite India’s reputation as a hub for global tech giants, its cryptocurrency market has yet to fully mature. The Reserve Bank of India has been pressuring banks to dissociate from cryptocurrency firms, and the government has implemented strict tax policies that have dampened local enthusiasm for digital assets.
Coinbase, another prominent exchange, stopped onboarding customers from India in 2023 due to informal pressure from the Indian central bank. These regulatory and fiscal hurdles have hampered the growth of India’s crypto ecosystem. Additionally, the recent hack at WazirX, a local exchange and former partner of Binance, where nearly half of its reserves were lost, dealt a significant blow to the advocates of a more crypto-friendly regulatory environment in the country.
In conclusion, Binance’s return to India after addressing regulatory concerns is a positive development for the country’s crypto market. However, the challenges posed by banking restrictions and strict tax policies still need to be overcome for India to fully embrace and benefit from the potential of cryptocurrencies.