Binance Soon INDIAN FIU-Registered Entity
Binance, previously banned by the government in January, is set to re-enter the Indian market, reportedly by paying a penalty of approximately $2 million, according to sources familiar with the situation speaking to ET.
The cryptocurrency exchange intends to return under the umbrella of an entity registered with the Financial Intelligence Unit (FIU) of the finance ministry, sources added. The FIU is responsible for overseeing trade in virtual digital assets (VDA). Binance plans to adhere to all relevant regulations, including the Prevention of Money Laundering Act (PMLA) and the VDA taxation framework, which it had previously been neglecting, as noted by one of the sources.
Officials familiar with the situation emphasized India’s consistent message to all global cryptocurrency exchanges: abide by the laws to continue operations within the country.
Expressing regret, one individual cited above remarked, “It’s regrettable that it took Binance over two years to understand that there is no room for negotiation and that no global powerhouse can expect special treatment, particularly if it risks exposing the country’s financial system to vulnerabilities.”
