In a significant development, the embattled cryptocurrency exchange Binance has obtained regulatory approval from India’s Financial Intelligence Unit (FIU) to resume operations in the country. This move comes after Binance and several other offshore platforms, including KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex, received non-compliance notices from the FIU in December 2023.
Following the notices, the Indian government took steps to block access to the websites and mobile applications of these exchanges in mid-January 2024. However, Binance and KuCoin have now managed to secure the necessary regulatory approvals, paving the way for their return to the Indian market.
According to reports, Binance will be required to pay a fine of $2 million as part of the conditions for re-entering the Indian market. The exchange’s head, Changpeng Zhao, had previously faced sentencing in the United States for violating anti-money laundering laws.
The regulatory approval for Binance and KuCoin comes at a time when India’s stance on cryptocurrencies has been marked by uncertainty and stringent taxation policies. The country imposed a 30% tax on crypto gains and a 1% tax deduction at source on every crypto transaction, leading many Indian investors to seek offshore exchanges to bypass the tax regime.
While Binance and KuCoin have successfully navigated the regulatory hurdles, other platforms like OKX and Bitstamp have reportedly closed their services in India following the ban. The re-entry of Binance and KuCoin is expected to provide Indian investors with more options and potentially boost the country’s crypto market, which has faced challenges due to the lack of regulatory clarity and banking facilities.
