Binance has paid a non-compliance fee for AML violations and is set to resume services in India.
Binance has paid a $2 million fine and is now the second international crypto exchange to operate legally in India after being banned for four months. The leading crypto exchange agreed to adhere to Indian Anti-Money Laundering (AML) laws as market leaders remain optimistic about the positive effects of the company’s return to the Indian financial market.
Earlier this year, Binance and nine other foreign crypto exchanges were banned in India due to non-compliance with the country’s stringent registration and AML laws. However, Binance has now embarked on a new phase of operations in India.
Binance Operations in India Kicks Off
As reported by The Economic Times, Binance will resume operations with a renewed commitment. The company is dedicated to operating within the legal framework of the Indian Financial Intelligence Unit (FIU). This move underscores Binance’s complete submission to the rules and regulations of the Indian market. Binance will also adhere to the Prevention of Money Laundering Acts (PMLA) laws and the newly introduced Visual Digital Asset (VDA) taxation framework.
“India has always been clear to all global cryptocurrency exchanges – comply with all laws to continue operating in India. It is unfortunate that it took (Binance) more than two years to realize that there is no negotiation and that no global powerhouse can command special treatment, especially at the cost of exposing the country’s financial system to vulnerabilities,” officials said.
Crypto Exchanges Adoption in India
Currently, only KuCoin and Binance are approved international crypto exchanges operating in India, and they claim to adhere strictly to its finance management laws. On the other hand, OKX has completely terminated operations in India due to high regulatory laws.
Industry leaders are optimistic about the impact of Binance’s return to the Indian cryptocurrency system. With its advanced crypto features and higher liquidity, Binance is expected to inject positive momentum into the market, benefiting investors and enthusiasts.
Manhar Garegrat, India head at crypto custody solutions provider Liminal, has said that Binance’s re-entry into India must be considered a big win that will bring maturity to the Indian crypto industry.
Binance native token BNB has not moved significantly to this announcement. It continues to trade above the $520 mark and has a market capitalization of over $81 billion.