Binance Access Restored in India, $2.25 Million PMLA Fine Lifted
Binance users in India can now access the exchange’s website after it was blocked in December 2023. The crypto exchange, which is touted as the largest in the world, has finally completed its registration with India’s Financial Intelligence Unit (FIU) and has also cleared the $2.25 million (approximately Rs. 18.8 crore) fine imposed on it in June this year. The fine was imposed due to Binance’s failure to comply with India’s Prevention of Money Laundering Act, 2002 (PMLA). With this, Binance is now active in the Indian webspace.
For Binance, this registration in India marks its 19th global license. Sweden, Kazakhstan, France and Dubai are some of the locations where the exchange has operational licenses.
Binance CEO Richard Teng stated that the company realizes the vitality and potential of the Indian virtual digital assets (VDAs) market, commenting on the company’s registration in India.
“Our registration with the FIU-IND marks a significant milestone in Binance’s journey. This alignment with Indian regulations allows us to tailor our services for Indian users. It is a privilege to expand our platform’s reach into this thriving market, supporting India’s ongoing VDA evolution,” Teng noted.
Binance’s registration with the FIU in India could have been completed in May. However, after investigating the exchange, Indian authorities found that Binance was not in compliance with the PMLA laws, which crypto companies must adhere to in order to operate in the country.
As part of the PMLA laws, crypto exchanges must have their users complete KYCs and monitor trading activities. Upon identifying suspicious transactions, the PMLA requires exchanges to report their observations to the relevant authorities.
Now that Binance has withdrawn the fine for non-compliance with India’s PMLA laws, access has been fully restored for Indian users.
“Implementing these leading frameworks in the Indian market can make a meaningful contribution to the local context and raise the market standards for all crypto exchanges. This is not only beneficial for the Indian VDA industry but most importantly, it provides stronger protection for users,” the exchange said.
Despite this development, Binance’s path forward still faces some bumps in India. For example, the company does not yet have a physical presence in the country. In fact, Binance is looking for locations where it could establish its headquarters.
Additionally, Binance was recently issued a notice for Rs. 772 crore (approximately $92 million) in GST charges. The Ahmedabad zonal unit of India’s Directorate General of GST Intelligence (DGGI) issued this notice to the multinational crypto exchange for levying a platform fee on Indian traders that reportedly reached the amount of at least Rs. 4,000 crore and was transferred to a foreign-based company.
It is not yet known how Binance will respond to this GST notice.
