Binance Beats India Ban With $2M Payoff

Crypto exchange Binance plans to make a comeback in India after clearing a roughly $2 million penalty. According to the Economics Times report, its re-entry will involve meeting new conditions, including registration with the Treasury Department’s Financial Intelligence Unit and adherence to relevant laws like the Prevention of Money Laundering Act and the VDA tax framework.

The development comes after three months when the platform, along with nine other offshore cryptocurrency platforms, was banned from operating in India in response to the platforms’ failure to comply with FIU and PMLA guidelines. Before that action, Binance enjoyed a share of 90% of the estimated $4 billion crypto holdings of Indian nationals.

Binance’s action has received industry acclaim for its potential to disrupt market dynamics positively. This is due to its introduction of advanced technology and greater liquidity compared to Indian exchanges, ensuring a level playing field for all. Additionally, this development coincides with the surge in popular cryptocurrencies like Bitcoin and Ethereum reaching record highs.

However, it must be kept in mind that all exchanges are now on a level playing field, where there is no evasion of taxes. User acquisition and retention will be a different ball game altogether.

Furthermore, financial regulators in the US, the UK, and Hong Kong have begun approving crypto-backed securities for trading in traditional financial markets. These advancements have triggered a surge in the value of major coins, leading up to the recent Bitcoin halving, a trend not seen in previous instances.

Binance & KuCoin’s Renewed Push into India

Having said that, Binance is not the initial crypto exchange to make a comeback. Previously, Kucoin, based in the Seychelles, declared FIU compliance, resulting in the removal of the ban. This move positioned the former as the second offshore exchange to officially register under the FIU and PMLA regulations.

“With KuCoin and now Binance, it seems like foreign exchanges are not ready to miss the Indian crypto market,” wrote one user.

Additionally, the trading platform is looking to provide localized payment solutions, establish a dedicated team in India, and make further investments in the country’s blockchain infrastructure.