Coinspeaker
Binance Returns to India after Regulatory Setbacks
On August 15, Binance announced that it has registered as a reporting entity with India’s Financial Intelligence Unit (FIU-IND), allowing it to legally offer its products and services to users in the region in compliance with local regulations.
This registration comes seven months after Binance exited the Indian market. The company was among nine crypto exchanges, including Kraken, KuCoin, and Huobi Global that were forced to shut down their operations in India by the country’s financial regulator due to non-compliance with regulations.
According to financial authorities, the exchanges failed to implement the necessary anti-money laundering (AML) protocols required of offshore crypto companies operating in India. As a result, the Indian government blocked all the companies’ websites and mobile applications to prevent users from accessing the platforms.
In June, Binance was fined approximately INR 188.2 million (around $2.25 million) by the FIU for violating the country’s AML rules.
Despite these setbacks, Binance later submitted an application to the FIU to serve as a Virtual Asset Service Provider (VASP). However, after reviewing the application, the authorities determined that Binance did not meet the requirements to be granted such a license in India.
The exchange, determined to re-enter the Indian market, Binance has now registered as a reporting entity to reestablish its operations in India.
Commitment to Compliance
According to Thursday’s announcement, the new registration underscores the company’s commitment to meeting compliance requirements. Binance stated that its registration in India marks an important milestone for the exchange.
“Our registration with the FIU-IND marks an important milestone in Binance’s journey. Recognizing 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. It is a privilege to extend the reach of our cutting-edge platform to this thriving market, supporting India’s continued VDA evolution,” said Richard Teng, CEO of Binance.
The company confirmed that both its website and mobile application are now fully accessible to Indian users. Customers in the region will be able to access the company’s spot and derivatives markets.
An Exciting Market with Vast Potential
Binance emphasized that its operations in India will be guided by its established principles of compliance, user security, and responsible growth while fostering the global evolution of digital assets.
The company recognizes the importance of expanding into the Indian crypto sector, calling it an “exciting market” with vast potential.
Last year, Chainalysis reported that India has one of the most rapidly growing markets in terms of crypto adoption.
According to the blockchain analytics firm, the country ranked among the top five nations in the Global Crypto Adoption Index, which estimates transaction volume across centralized and decentralized exchanges, lending protocols, and token smart contracts.
