Binance Receives Approval to Offer Services in India from FIU
Global cryptocurrency exchange Binance has received approval from the Indian Financial Intelligence Unit (FIU) to offer its services in India, making it the second offshore crypto exchange to obtain regulatory approval after KuCoin.
According to a report by CoinDesk, Vivek Agarwal, the head of FIU, confirmed that Binance is now a registered entity in India. This comes after nearly a dozen foreign crypto exchanges, including Binance and KuCoin, received a notice of noncompliance in December 2023.
In response to the notice, the Indian Finance Ministry instructed its IT department to block access to the banned crypto platforms in mid-January 2024. However, Binance and KuCoin worked with the regulatory body to obtain FIU compliance and resume their services in India.
The news of Binance’s FIU registration comes after reports in April that the exchange would likely return to India after paying a $2 million fine for noncompliance. This move follows India’s imposition of a 30% tax on crypto gains and a 1% tax deduction on every crypto transaction, leading many Indian investors to seek out foreign exchanges to avoid the tax burden.
Despite being a potentially lucrative market for crypto exchanges, India has faced challenges due to its tax policies and regulatory uncertainty. Many traders and businesses have shifted operations overseas, while those remaining in India struggle to access banking services and gain investor trust.
Cointelegraph reached out to Binance and FIU for comments but had not received a response at the time of publishing. The approval of Binance to operate in India marks a significant development in the country’s crypto landscape, as regulatory clarity and compliance become increasingly important for industry players.
