Binance Set to Relaunch in India as a Compliant Entity Registered with the FIU

Want to know how Binance will stand out with it re entry? Check below!

Binance, had been going great guns as the largest crypto exchange until it got banned in India in January 2024. Spilling the beans, Binance is now all set to revamp its operations in India. As we all know, Binance has paid a hefty penalty of $2 million and is now ready to bounce back as a Financial Intelligence Unit's registered entity, according to the report.

Binance was reportedly banned from the country due to its non-compliance with anti money laundering.

"It was unfortunate that Binance has taken a long time to realize that there is no room for any negotiations and no global power house can command any special treatment" stated a report.

Binance has recently registered a trading volume of $22 billion in the past 24 hours encompassing 25% of the global volume, according to the CoinMarketCap data.

According to a January report, Binance was one among the 9 offshore cryptocurrency platforms to be banned from India from operating through web addresses and mobile applications.

Tax leaks

Binance used to hold 90% of over $4 billion crypto asset holdings of Indian nationals.Binance's market dominance mainly comes with its non compliance with tax laws, that eventually allowed the investors to go with the trading without 1% of the tax deductions (TDS) on registered exchanges. Indian head of crypto, Manhar Garegat also quoted that Binance' re entry will definitely be a win in the crypto industry as it can bring maturity, with all the companies worldwide investing in India. However, it must be kept in mind that all exchanges are now on a level playing field, where there is no evasion of taxes. User acquisition and retention will be a different ball game altogether," he added.

Many Indian investors like CoinDCX, WazirX have moved their holdings to Indian Exchanges following the ban of Binance. According to the research by Esya Centre, global crypto exchanges that do not have a registered entity in India were also leading to massive tax leakage of Rs. 3000 crore every year to the exchequer.

Growth and future compliance

World's largest crypto exchange now operating in the country by obliging the Indian laws and regulations is a tremendous move to be noticed.

The senior executive at the cryptocurrency exchange also added, "I think the bigger win here is getting an entity like Binance to agree and comply with Indian laws and participate in the country's financial monitoring system by reporting to the law enforcement agencies".

Binance will now stand tall as the second offshore exchange to be registered in India after Seychelles Kui Coin has officially declared its FIU compliance previous month following which the ban has been lifted up.

Binance's re entry has instilled hope in the market leaders as it has the capacity to bring in more liquidity when compared to Indian Exchanges.