After a brief hiatus, Binance, one of the world’s leading cryptocurrency exchanges, has successfully re-entered the Indian market by registering as a reporting entity with the Financial Intelligence Unit (FIU-IND) under the Ministry of Finance. This crucial step marks Binance's compliance with Indian regulations, allowing the exchange to resume its operations within the country.
Following its registration with FIU-IND, Binance’s website and mobile app are now fully accessible to Indian users. This development is a significant move for the crypto exchange, which had previously faced regulatory hurdles in India. The Financial Intelligence Unit (FIU) is responsible for overseeing the trade of Virtual Digital Assets (VDA) in India, ensuring that exchanges comply with the Prevention of Money Laundering Act (PMLA) and adhere to the VDA taxation framework. According to Indian law, all cryptocurrency exchanges must register as reporting entities to legally offer crypto trading services in the country.
Richard Teng, CEO of Binance, expressed his optimism about the company’s return to India, stating, “Our registration with the FIU-IND marks an important milestone in Binance’s journey. Recognising the vitality and potential of the Indian VDA market, this alignment with Indian regulations allows us to tailor our services to the needs of Indian users…”
Binance has committed to fostering "responsible growth" in the Indian market, with a strong emphasis on enhancing user protections. As part of its renewed operations, Binance is set to deploy comprehensive policies and frameworks designed to combat the financing of terrorism (CFT) and curb money laundering, ensuring a secure environment for its users.
To reinforce its compliance with Indian laws, Binance has implemented rigorous Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) controls. The company’s compliance program includes robust identity verification processes, known as Know Your Customer (KYC), and an industry-leading Financial Crimes Compliance (FCC) unit. This unit is specifically designed to assist law enforcement agencies in investigating crypto-related crimes and in building capacity, thereby strengthening the security of the cryptocurrency ecosystem in India.
Binance's reentry into India comes eight months after the Ministry of Finance issued notices to nine overseas crypto platforms, including Binance, for failing to register as reporting entities and not complying with anti-money laundering regulations. In response, the Financial Intelligence Unit requested the Ministry of Electronics and Information Technology (MeitY) to block the websites of these non-compliant entities. Consequently, Binance was delisted from app marketplaces in India, and its website was blocked in the country.
In its efforts to return to the Indian market, Binance engaged in discussions with various government stakeholders. The company even expressed willingness to pay the required taxes and penalties to resume operations. However, the Indian government remained firm on the condition that Binance must fully comply with the PMLA and other relevant regulations.
In June 2024, the Indian government imposed a fine of INR 18 crore on Binance, ordering the company to comply with local norms before it could resume operations in the country. Binance has since paid the fines and, after meeting all regulatory requirements, has officially gone live again in India. This move underscores Binance's commitment to adhering to Indian laws and contributing to the growth of the country's digital asset market.
Binance's return to India, marked by its compliance with local regulations and the payment of significant fines, signifies the company’s dedication to establishing a robust and secure presence in the Indian cryptocurrency market. As Binance resumes its operations, it aims to play a key role in the growing digital asset ecosystem in India, ensuring that its platform is safe, secure, and compliant with the highest standards of financial regulation.