Binance is coming back to the Indian market on the 78th anniversary of Independence Day
Binance has re-entered the Indian market following its successful registration with the Financial Intelligence Unit (FIU-IND) of India.
Binance, one of the world’s largest cryptocurrency exchanges, has formally re-entered the Indian market. This announcement is the result of Binance’s effective registration with India’s Financial Intelligence Unit (FIU-IND).
Nevertheless, the crypto exchange encountered significant obstacles and substantial penalties as a result of its registration with the FIU-IND.
The commemoration of India’s 78th Independence Day coincides with Binance’s 19th global regulatory milestone, the registration. Therefore, it is a moment of celebration for the Indian crypto community and Binance.
The high ranking of India on Chainalysis’ 2023 Global Crypto Adoption Index is indicative of its adoption of crypto. In terms of transaction volume across various platforms, the nation was among the top five. This vibrancy establishes India as a critical participant in the crypto industry, emphasizing the strategic significance of Binance’s re-entry.
In India, Binance has implemented a comprehensive framework for combating the financing of terrorism (CFT) and anti-money laundering (AML) policies.
These measures are a component of a more comprehensive compliance program that includes rigorous identity verification procedures. Assistance to law enforcement and the enhancement of the VDA ecosystem’s overall security are essential functions of this entity.
Binance received a show-cause notice from India’s Directorate General of GST Intelligence (DGGI) earlier this month. The DGGI requested a payment of approximately $86.047 million in Goods and Services Tax (GST).
This notice pertains to the fees collected from Indian consumers and classifies these transactions as online information database access or retrieval (OIDAR) services. Despite Binance’s extensive market share and operations in over 150 countries, Indian tax authorities scrutinized the company due to its previous absence of registration under the Indian GST framework.
The FIU-IND also assessed a $2.2 million fine on Binance earlier this year for failing to comply with AML regulations. This penalty was instrumental in facilitating Binance’s registration in India. Regulatory notices issued to numerous offshore crypto exchanges, including Binance, have resulted in restricted access to Binance’s services for Indian users since December 2023.
Apple’s removal of non-compliant platforms from its App Store and the IT Ministry’s blocking of their websites made worse the situation, forcing users to switch to compliant Indian exchanges. Ultimately, Binance’s objective is to provide its Indian consumers with a service that is entirely compliant, secure, and transparent through its new registration.
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