Binance Clears Regulatory Hurdle, Secures Approval in India

Binance, a leading global cryptocurrency exchange, has achieved a significant milestone in its expansion efforts by securing regulatory approval from India’s Financial Intelligence Unit (FIU).

This approval marks a major breakthrough for the company, making it the second international exchange to receive such clearance in India, following KuCoin’s earlier compliance achievement.

JUST IN: 🇮🇳 Binance and Kucoin to re-launch in India after becoming the first off-shore crypto exchanges to be registered with the Financial Intelligence Unit pic.twitter.com/qi9bjRPqX1

— Radar🚨 (@RadarHits) May 10, 2024

The approval comes after a period of regulatory challenges for Binance and other major exchanges like Huobi and Kraken, which faced compliance setbacks in December 2023 when the Indian Finance Ministry blocked access to their platforms.

However, Binance’s proactive engagement with the regulatory body, coupled with a reported $2 million settlement for previous noncompliance, has paved the way for its return to the Indian market.

Binance to Enter India in High-tax Regime

Binance’s re-entry into India is particularly significant given the recent changes in India’s crypto landscape. This includes the introduction of a 30% tax on crypto gains and a 1% tax deduction at source on transactions by the Indian government.

These measures had led Indian investors to turn to foreign exchanges, with Binance accounting for a significant portion of India’s crypto trading volume.

Despite the challenges posed by the tax regime and regulatory uncertainties, India remains a lucrative market for crypto businesses, thanks to its vibrant economy and tech-savvy population.

As such, Binance’s re-entry into the Indian market is not only a positive development for the company but also a signal of a potential shift towards a more accommodating regulatory environment for cryptocurrencies in the country.

The approval is expected to reignite the interest of Indian investors and traders, who have been cautious due to the lack of clarity in regulations and banking support for crypto exchanges.

With Binance’s strong track record and the FIU’s endorsement, there is renewed optimism that other major exchanges will follow suit, leading to a more robust and trustworthy crypto ecosystem in India.

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