Binance Returns to India After Reportedly Paying $2.25M Fine

Key Takeaways

• Binance has relaunched in India after a 7-month hiatus.
• The exchange reportedly paid a 188.2 million rupees ($2.25 million) penalty.
• Alongside other offshore exchanges, the Indian Financial Intelligence Unit (FIU) banned Binance for failing to register for AML purposes.

Seven months after the Indian Financial Intelligence Unit (FIU) blocked access to Binance for failing to register under the country’s anti-money laundering (AML) regime, the crypto exchange has returned with the necessary permissions.

To receive its FIU registration, Binance reportedly had to pay a fine of 188.2 million rupees ($2.25 million) for its previous compliance failures. 

Binance Reboots Indian Exchange

In a blog post  on Thursday, Aug. 15, Binance celebrated its FIU registration as its “19th regulatory milestone globally.”

Binance has relaunched its website and app in India and has begun onboarding new users in the country for the first time since the earlier ban this year.

Commenting on the relaunch, CEO Richard Teng said: 

“Our registration with the [FIU] marks an important milestone in Binance’s journey. Recognizing the vitality and potential of the Indian [market], this alignment with Indian regulations allows us to tailor our services to the needs of Indian users.”

The $2.25 million penalty was first reported by Reuters in June; however, it has not been confirmed by Binance or the FIU.

Indian crypto investors are likely to welcome the return of the world’s largest exchange. However, other major platforms have yet to stage their comeback.

Other Exchanges Prepare for Indian Comeback

After taking on responsibility for overseeing AML practices in the space, the FIU issued warnings to several major exchanges, including Binance, Kucoin, Huobi, Kraken, Gate.io, Bitstamp, MEXC Global, Bittrex, and Bitfinex.

Although it wasn’t one of the firms initially banned by the FIU, in March, citing regulatory challenges, OKX also told its Indian customers they would no longer be able to buy crypto.

Among the offshore platforms affected by the FIU’s order, KuCoin was the first to re-enter the Indian market  after paying a $41,000 fine. According to local media , the FIU has received four additional registration requests.

Binance Faces $86 Million Indian Tax Bill

Upon its return to India, Binance is already facing a huge tax liability in the country.

Following an investigation by the Indian tax authority, Binance may have to pay as much as $86 million in Goods and Services Tax (GST) related to past transactions on the platform.

About the Author

James Morales

Although his background is in crypto and FinTech news, these days, James likes to roam across CCN’s editorial breadth, focusing mostly on digital technology. Having always been fascinated by the latest innovations, he uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.

See more

[email protected] LinkedIn Twitter