- Binance is reportedly looking to make a comeback to the Indian market after being banned by the local government in Jan 2024.
- The leading crypto exchange will return as a registered entity that complies with all local tax rules and anti-money laundering laws.
Binance Could Make a Comeback in India
Binance, the world’s largest crypto exchange, is preparing to hit the Indian market after paying a $2 million penalty.
Notably, Binance aims to redefine its South Asian entity to become fully registered with India’s Financial Intelligence Unit.
The crypto exchange will work with this entity to comply with all applicable regulations, including taxation and local money laundering laws.
Interestingly, in January 2024, the Indian government banned nine crypto websites, including Binance, from operating in the region.
It cited that the nine websites operated illegally without proper compliance with local regulations.
Following this move, Google and Apple stores removed their crypto exchange apps from India.
We remain committed to complying with local regulations and maintaining dialogue with regulators worldwide to ensure the continued availability of our services.
Binance South Asia X account stated in January.
Officials familiar with the matter said India’s position concerning all global crypto exchanges has always been clear.
They must comply with all local laws to continue operating in India.
Ban Crypto Exchanges Allowed Tax Leaks
Before the Binance ban, the crypto exchange accounted for roughly 90% of Indian investors’ cryptocurrency holdings.
Impressively, this was a staggering $4 billion investment attributed to Binance’s non-compliance with local tax laws.
The platform allowed users to trade crypto without paying the 1% tax deducted at source (TDS) applicable to all registered exchanges.
Manhar Garegrat, India head at crypto custody solutions provider Liminal, reacted to the news by saying Binance’s re-entry to the Indian market should be considered a win.
And would bring maturity to the crypto industry in the region. Moreover, Garegrat added that all exchanges are on a level playing field without tax evasion.
Manhar suggests that user acquisition and retention will be different for all crypto exchanges in the region.
Cryptocurrency Growing Compliance and Adoption
Binance’s re-entry into the Indian crypto market as a registered entity, fully compliant with local laws, marks a significant turnaround.
It’s a big win for India to get Binance, with its caliber, to agree to and comply with Indian laws.
More importantly, agreeing to participate in the country’s financial monitoring system by reporting to law enforcement agencies.
Notably, Binance is the second offshore exchange to register in India after Seychelles-based Kucoin announced FIU compliance last month.
It triggered the lifting of the ban initially imposed in January 2024. Kucoin noted that complying and registering with FIU is setting a precedent for a more secure, inclusive, and regulated crypto landscape in India.
Market watchers believe Binance’s return in India will shift market dynamics. Since the exchange brings superior technology and more liquidity than local crypto exchanges.
Moreover, Binance re-enters India when Bitcoin (BTC) and Ethereum (ETH) prepare to breach new all-time highs.
Will Binance’s re-entry into India’s crypto landscape foster broader crypto adoption in the region?
Michael Healy
Binance Could Make a Comeback in India Logo of Binance | Source: Shutterstock Binance, the world's largest crypto exchange, is preparing to hit the Indian market after paying a $2 million penalty. Notably, Binance aims to redefine its South Asian entity to become fully registered with India’s Financial Intelligence Unit. The crypto exchange will work with this entity to comply with all applicable regulations, including taxation and local money laundering laws. https://twitter.com/cryptowisdom7/status/1780836576785797199 Interestingly, in January 2024, the Indian government banned...
