April 18, 2024 — Binance, one of the world’s leading cryptocurrency exchanges, is set to reenter the Indian market with a strategic focus on compliance. The exchange has announced plans to register with the Financial Intelligence Unit (FIU) under India’s finance ministry, adhering to the stringent regulations outlined in the Prevention of Money Laundering Act (PMLA) and the Virtual Digital Assets (VDA) taxation framework.
Binance, previously a major player in India’s cryptocurrency landscape, had faced a ban due to non-compliance with local tax laws, particularly the omission of the mandatory 1% tax deducted at source (TDS) on crypto transactions.
The exchange is making a comeback as a fully compliant entity, promising adherence to all regulatory requirements. This move is expected to instill a greater level of trust and security in the cryptocurrency trading environment in India.
The exact timeline for Binance’s reentry has not been disclosed, but the announcement comes at a time when cryptocurrencies like Bitcoin and Ethereum are experiencing significant gains, drawing heightened interest from investors worldwide.
Binance plans to reestablish its operations across India, with intentions to integrate localized payment solutions and build a dedicated team to support its endeavors in the region.
The primary motive behind Binance’s return is to regain its foothold in the lucrative Indian market while contributing positively to the country’s crypto ecosystem’s maturity and regulatory compliance. This approach is in response to India’s clear stance that only exchanges complying with its laws can operate within its borders.
Binance intends to implement several strategic initiatives, including the establishment of localized payment channels, recruitment of a specialized team focused on Indian operations, and increased investments in the country’s blockchain technology sector. These efforts aim to mitigate the risks associated with non-compliance and position Binance as a leading compliant crypto exchange in India.
The reintroduction of Binance is expected to disrupt the current market dynamics, challenging local exchanges like CoinDCX and WazirX by offering superior technology and greater liquidity. This move is viewed positively by industry leaders and is anticipated to address the significant tax leakage issues previously plaguing the sector, which were estimated at nearly Rs 3,000 crore annually. With Binance’s compliance-focused strategy, the Indian cryptocurrency landscape is poised for a more regulated and robust future.
