Binance Resumes Operations in India After Regulatory Compliance

Binance, the world’s largest cryptocurrency exchange, has officially resumed operations in India after fulfilling local regulatory requirements. This move marks a significant turnaround for the exchange, which had previously halted its activities in the country due to non-compliance with Indian laws. Binance announced on Thursday that its website and mobile app are now accessible to Indian users following its registration with the Financial Intelligence Unit (FIU) in May 2024.

The resumption of operations in India is a critical step for Binance as it seeks to expand its global footprint while navigating the complex regulatory landscape. The exchange’s return is seen as a positive development for the Indian crypto market, which has been grappling with regulatory uncertainties and the exit of several major platforms. Alongside Binance, other major exchanges like KuCoin have also re-entered the Indian market after meeting the necessary regulatory requirements.

Binance and KuCoin Re-Enter India After Regulatory Compliance

After being barred from operating in India due to non-compliance with local regulations, Binance has now successfully registered with the Financial Intelligence Unit (FIU) of India. This registration is a mandatory step for cryptocurrency exchanges to operate in the country legally. Binance’s announcement, made on Thursday, confirmed that both its website and app are now accessible to Indian users. Similarly, Seychelles-based exchange KuCoin, which had also faced regulatory challenges, resumed operations in April after registering with the FIU.

The return of these exchanges marks a turning point in the Indian cryptocurrency market, which has been grappling with regulatory uncertainty and stringent government oversight. The Indian authorities had previously targeted several offshore cryptocurrency exchanges, including Binance, KuCoin, Kraken, and HTX, for operating without proper registration. This crackdown led to the temporary suspension of services for many of these platforms.

New Tax Regulations Reshape the Indian Crypto Market

The resumption of operations by Binance and KuCoin comes in the wake of new tax regulations introduced by the Indian government in 2022. These regulations require all registered cryptocurrency exchanges to collect a transaction tax, commonly known as TDS (Tax Deducted at Source), from their users. The imposition of this tax has had a notable impact on trading volumes across the country and has raised concerns among local exchanges about increased competition from international players.

KuCoin has confirmed that it has been collecting the mandated transaction tax since its return to the Indian market. A spokesperson for Binance also emphasized that the company is fully compliant with the current laws and regulations in India. The enforcement of these regulations has significantly altered the competitive landscape in the Indian crypto market. For instance, WazirX, once a major local competitor and a former partner of Binance, has had to suspend all trading activities following a $235 million hack last month, further complicating the market dynamics.