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Binance Returns to India with FIU Approval

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Binance Returns to India with FIU Approval

Binance, a global cryptocurrency exchange, has been given approval by the Financial Intelligence Unit (FIU), an Indian financial regulator, to operate in India. This makes Binance the second offshore crypto exchange to receive regulatory clearance, following KuCoin. The head of the FIU, Vivek Agarwal, confirmed that Binance is now a registered entity. In December 2023, Binance and KuCoin, along with several other foreign exchanges, received a notice of noncompliance. The Indian Finance Ministry directed its IT department to block access to these banned crypto platforms in mid-January 2024. Binance and KuCoin worked with the regulatory body to achieve FIU compliance and resume their services in India. Other exchanges, such as OKX and BitStamp, chose to close their services in the country instead.

Earlier reports in April indicated that Binance would likely return to India after paying a $2 million fine for noncompliance. The surge in Indian investors using foreign crypto exchanges was partially prompted by India’s imposition of a 30% tax on crypto gains and a 1% tax deduction on every crypto transaction. At its peak, Binance accounted for 90% of total trading volume from India. Despite its potential as a thriving crypto market, India has cooled down due to high taxes and a lack of regulatory clarity. Many traders and businesses have moved their operations overseas, while the few exchanges remaining in the country struggle to establish trust without proper banking facilities. attempted to reach out to Binance and the FIU for comment but had not received a response at the time of this article’s publication.

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