Crypto exchange Binance has officially re-entered the Indian market after a seven-month gap following its registration with the Financial Intelligence Unit of India (FIU-IND). This is the 19th such approval received by Binance as it continues to pursue operations in one of the world’s largest cryptocurrency markets.
Binance’s Compliance with Indian Regulations
Binance is coming back to India after the temporary ban by the Indian government due to the non-adherence of the exchange to local laws. In January, the FIU-IND ordered the blocking of the website addresses and mobile applications of the exchange and eight other cryptocurrency exchanges for not having previously complied with the registration as report entities.
This is a legal process put in place by the government of India to make sure that all the crypto exchanges operating within the country meet the legal requirements of the country, especially as regards anti money laundering.
The Indian government has implemented a legal framework to ensure that all exchanges adhere to its anti-money laundering regulations.
On August 15, the exchange opened its website and applications for Indian users once again. The company got the confirmation of its registration with the FIU-IND, enabling it carry out its activities in the country. Binance did not confirm if it had paid the reported $2.25M fine for non-compliance. However, it is currently in compliance with Indian laws.
Richard Teng, CEO of Binance, stressed on the significance of the Indian market for the overall scheme of the company. He noted that India falls among the top five countries in calculated transaction volume in all the crypto markets.
Teng remains optimistic about the future of the Indian virtual digital asset market. He believes that their adherence to Indian laws will enhance its services for Indian customers.
Binance is expected to make a comeback to the Indian market which has about 100M traders in crypto. The exchange’s return is considered as a good sign for the overall crypto market in India which has faced regulatory issues in the past years.
Binance’s Global Regulatory Milestones
India is not the only country where Binance has had to find its way around recent regulatory issues. The exchange has been engaged in addressing legal and compliance challenges in many jurisdictions across the globe. For instance, in April this year, Binance got a VASP license in Dubai while its co-founder CZ stepped down from the board of the exchange’s Middle East unit. This was in line with Binance’s overall plan of abiding with the laws in various regions.
Besides its return to India, Binance has also made substantial developments in Brazil. The exchange finalised a legal battle with CVM, the Brazilian securities and exchange commission, where it agreed to a settlement of 9.6 million reais ($1.75 million).
The settlement was in connection with Binance providing derivatives trading services in the country without the necessary permit. In Brazil and India, Binance has demonstrated how it is preparing for the regulation as the company expands its operations.
Market Outlook for Binance and BNB
With its return to India, Binance has seen its native token, BNB, benefit. The token is now in a long-term upward trend, and experts expect the trend to continue. BNB may be seen continuing its upward movement and reaching the $600 level with first resistance at the $560.90.
The 12-day Moving Average Convergence Divergence (MACD) momentum indicator is positive, indicating that BNB will likely rise.
However, Binance may encounter some issues such as the recent tax bill by the Indian government. The Ahmedabad unit of the Directorate General of GST Intelligence has claimed $86m in GST from Binance. The tax recovery notice claims Binance charged Indian customers fees for trading virtual digital assets on the exchange without registering under India’s Goods and Services Tax regime.
Source: https://www.thecoinrepublic.com/2024/08/15/binance-makes-a-compliance-comeback-in-this-country/