Binance is reportedly set to re-enter the Indian market by paying a fine of nearly $2 million. The largest cryptocurrency exchange was earlier banned by the Indian government after it failed to comply with the country's proposed guidelines.
Binance will be returning to the Indian market as a registered firm with the Financial Intelligence Unit (FIU), which oversees transactions involving virtual digital assets (VDAs), as per sources cited in the Economic Times report.
The company will now be adhering to all the relevant regulations, such as the Prevention of Money Laundering Act (PMLA) and the taxation framework for virtual digital assets (VDAs), a company spokesperson told ET.
Binance was one of the nine offshore cryptocurrency platforms that were, earlier this year, barred from operating in India. This move by the government came after the platforms failed to comply with FIU and PMLA regulations.
India's position has always been clear for all international cryptocurrency exchanges, that is to adhere to all the domestic regulations to maintain operations in the country.
“Unfortunate that it took (Binance) more than two years to realise there is no room for negotiations, and (that) no global powerhouse can command special treatment, especially at the cost of exposing the country’s financial system to vulnerabilities,” one of the officials told ET.
Regulatory authorities in countries such as the US, the UK, and Hong Kong have begun granting approval for cryptocurrency-backed securities to be traded in financial markets. The company is looking to provide localized payment options and increase its investments in the country's blockchain infrastructure.
