Key Points
- Binance has registered with India’s Financial Intelligence Unit (FIU-IND), enabling it to legally operate in the region.
- The registration comes seven months after Binance and other crypto exchanges had to exit the Indian market due to regulatory issues.
On August 15, Binance declared that it has become a registered entity with India’s Financial Intelligence Unit (FIU-IND). This registration permits Binance to legally provide its products and services to users in India, in accordance with local regulations.
This development occurs seven months after Binance had to leave the Indian market. Binance, along with eight other crypto exchanges such as Kraken, KuCoin, and Huobi Global, had to cease their operations in India. This was enforced by the country’s financial regulator due to these companies’ failure to comply with regulations.
Non-compliance with Regulations
Financial authorities in India stated that these exchanges did not put the necessary anti-money laundering (AML) protocols in place, which are required for offshore crypto companies operating in India. Consequently, the Indian government blocked all the companies’ websites and mobile applications to prevent users from accessing the platforms.
In June, Binance was penalised approximately INR 188.2 million (around $2.25 million) by the FIU for violating the country’s AML rules.
Despite these challenges, Binance later submitted an application to the FIU to serve as a Virtual Asset Service Provider (VASP). However, after reviewing the application, the authorities determined that Binance did not meet the requirements to be granted such a license in India.
Determined to re-enter the Indian market, Binance has now registered as a reporting entity to reestablish its operations in India.
Commitment to Compliance
According to the announcement, the new registration highlights the company’s commitment to meeting compliance requirements. Binance stated that its registration in India marks an important milestone for the exchange.
Richard Teng, CEO of Binance, expressed his excitement about this development. He emphasized the importance of the Indian market and how this alignment with Indian regulations allows Binance to tailor its services to the needs of Indian users.
The company confirmed that both its website and mobile application are now fully accessible to Indian users. Customers in the region will be able to access the company’s spot and derivatives markets.
An Exciting Market with Vast Potential
Binance stressed that its operations in India will be guided by its established principles of compliance, user security, and responsible growth while fostering the global evolution of digital assets.
The company recognizes the importance of expanding into the Indian crypto sector, calling it an “exciting market” with vast potential.
Last year, Chainalysis reported that India has one of the most rapidly growing markets in terms of crypto adoption.
According to the blockchain analytics firm, the country ranked among the top five nations in the Global Crypto Adoption Index, which estimates transaction volume across centralized and decentralized exchanges, lending protocols, and token smart contracts.
