Binance, the world’s largest cryptocurrency exchange, has resumed operations for users in India after a seven-month suspension imposed by local authorities for allegedly operating “illegally” in the country. The exchange announced on Thursday that it has registered as a reporting entity with India’s Financial Intelligence Unit (FIU), a government agency responsible for monitoring financial transactions.
- India blocked nearly a dozen foreign crypto exchanges, including Binance, Kraken, KuCoin, and Mexc, following the FIU’s recommendation. The FIU required these offshore exchanges to register locally to comply with India’s anti-money laundering and counter-financing of terrorism regulations.
- Binance’s website and mobile apps are now operational in India. The company stated that compliance with the Indian authority marks its 19th regulatory milestone.
Binance’s registration with the FIU-IND is seen as a significant step in the company’s efforts to align with Indian regulations. Richard Teng, CEO of Binance, highlighted this achievement, stating, “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.”
Despite India being an important market for global tech giants, its cryptocurrency sector remains relatively underdeveloped. The Reserve Bank of India has pressured banks to distance themselves from cryptocurrency firms over the past five years, and strict tax policies have further dampened local interest in digital assets.
The recent hack at WazirX, a local exchange and former Binance partner, which resulted in the loss of nearly half its reserves, has also dealt a significant blow to local efforts to advocate for a more crypto-friendly regulatory environment.
