Global cryptocurrency exchange Binance is set to resume operations in India after registering as a reporting entity with the Financial Intelligence Unit India (FIU-IND). This move comes more than six months after Binance received a show cause notice from the Finance Ministry for noncompliance with the country’s anti-money laundering (AML) laws.
Binance, one of the world’s largest cryptocurrency exchanges, took this significant step on Thursday, signaling its intent to align with Indian regulatory requirements. The registration marks a crucial development in Binance’s efforts to operate within the legal framework of India, a key market for virtual digital assets (VDAs).
“Recognising the vitality and potential of the Indian VDA (virtual digital assets) 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, Chief Executive Officer of Binance, in a statement on the company’s blog.
Binance emphasized that it is committed to meeting the registration requirements in India, bringing its comprehensive compliance program to the country. This program includes stringent anti-money laundering (AML) policies and controls, as well as a robust framework for combating the financing of terrorism (CFT). The firm’s renewed focus on compliance follows a significant penalty imposed by the FIU in June, when Binance was fined ₹18.82 crore for operating in India in violation of domestic AML regulations.
In December of the previous year, the Finance Ministry issued show cause notices to nine offshore VDA service providers, including Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. These notices were part of the government’s crackdown on noncompliance with India’s anti-money laundering laws, highlighting the need for foreign crypto exchanges to adhere to local regulations.
Binance’s registration as a reporting entity with FIU-IND marks a pivotal moment in its re-entry into the Indian market. The firm’s commitment to aligning with India’s regulatory environment reflects its broader strategy of adhering to global standards while catering to the unique needs of local markets.
“(Binance) is bringing its world-class compliance program, which encompasses robust anti-money laundering (AML) policies and controls and a comprehensive framework for combating the financing of terrorism (CFT),” Binance added in its statement.
The Indian cryptocurrency market, one of the fastest-growing in the world, presents significant opportunities for global exchanges like Binance. By complying with local regulations, Binance aims to build trust and credibility among Indian users, positioning itself as a leading player in the country’s burgeoning VDA sector.
The FIU’s actions against Binance and other crypto exchanges underscore the Indian government’s determination to enforce AML regulations within the rapidly evolving digital asset space. As Binance resumes its operations in India, the company’s adherence to compliance standards will likely be closely monitored by regulators and industry stakeholders alike.
