Binance faced serious challenges in securing registration in India, particularly after being hit with a huge fine last month.
The Financial Intelligence Unit of India, the FIU-IND imposed a hefty penalty of approximately $2.25 million on Binance, for violations of the country’s anti-money laundering laws.
Big market, big responsibilities
The trouble began in December 2023 when the FIU issued a warning to Binance and other crypto exchanges for failing to comply with local regulations.
By January, these warnings escalated into a direct ban on trading through Binance’s website and mobile apps in India.
In response, Binance CEO Richard Teng acknowledged the importance of the Indian virtual and digital assets market, sharing that aligning with Indian regulations would allow the exchange to better serve its Indian user base. And of course, earn more money.
India is growing, so its influence in the crypto industry
India rapidly emerged as one of the largest cryptocurrency markets globally.
Just take a look at the numers of the 2023 Global Crypto Adoption Index by Chainalysis, and we can see that India ranks among the top five countries in terms of transaction volume across all cryptocurrency platforms.
The growth is undeniable, but the regulatory environment is still challenging for crypto exchanges operating in the country.
Binance’s efforts to register could showing the way for other exchanges to follow suit. Several international platforms, including KuCoin and Kraken, have also faced obstacles in India.
While KuCoin already settled its fines for past regulatory violations, others like Bitstamp and OKX have ceased their operations completelly in the country.
Binance’s successful registration could encourage these exchanges to comply with Indian regulations and coming back to the country.
The future of the business
Once Binance completes its registration process, the exchange plans to resume its operations in India with a renewed focus on compliance.
This will involve strengthening its anti-money laundering procedures and the Know Your Customer process.
By doing so, Binance wants to create a secure trading environment that obey to Indian laws while meeting the needs of its users.
