Regulation
Indian Customers Can Access Binance Again: Reports
Binance, the world’s largest cryptocurrency exchange, is reportedly set to continue its operations after agreeing to pay a fine to the Financial Intelligence Unit of India (FIU-IND).
The move is a key part of a broader drive to bring international trade into compliance with Indian regulations.
Binance joins KuCoin to become a compliant crypto exchange in India
Binance and KuCoin has achieved a significant milestone by becoming the first crypto-related offshore entity to register with the FIU-IND. This step is indeed crucial in a sector where Indian authorities require compliance with strict anti-money laundering (AML) laws.
The need to register arose after a difficult period in December 2023, when FIU-IND has issued show cause notices to nine offshore crypto exchanges. This also included industry leaders like Binance and Kraken.
Learn more: The State of Crypto Regulation in India
With Apple removes non-compliant platforms from its App Store and the IT Ministry blocking their websites, users were asked to transfer their assets to Indian exchanges registered with the FIU. These reviews came from exchanges operating without adhering to the Prevention of Money Laundering Act (PMLA) of 2002which requires strict standards of record keeping and reporting.
Finally, following in the footsteps of KuCoin, which resumed operations after settling a $41,000 penalty, Binance could make a similar move.
“Binance is registered but the compliance process is not completed as the penalty amount is to be decided by me and this hearing is still ongoing,” Vivek Aggarwal, head of FIU-IND. said.
Sumit Gupta, co-founder of Indian crypto exchange – CoinDCX, welcomed Binance and KuCoin to the Indian market. In an interview with BeInCrypto, Gupta expressed his excitement over these developments.
“A compliant crypto ecosystem, comprising FIU-compliant actors, not only benefits all stakeholders, but also protects against bad actors. These developments mark significant progress in ensuring that crypto exchanges operate in compliance with regulations such as the Prevention of Money Laundering Act (PMLA), laying the foundation for a more compliant ecosystem,” Gupta told BeInCrypto .
Balaji Srihari, Head of Sales at CoinSwitch, also echoes these sentiments.
“It is commendable to see major global exchanges such as Binance and KuCoin leading by example and adhering to the FIU standards. These standards establish a systematic approach to monitoring transactions and provide a designated channel for reporting suspicious activities,” Srihari told BeInCrypto.
As Binance moves toward full compliance, its customers will likely face financial obligations. This includes a tax deduction at source (TDS) of 1%. Introduced in 2022, a 1% TDS on crypto trading aims to increase transparency.
Learn more: Crypto regulation: what are the advantages and disadvantages?
Additionally, merchants face a 30% discount capital gains tax on profits, which has been a controversial issue within the crypto community. However, these regulatory measures are part of a broader effort by the Indian government to regulate the crypto market. The aim is to align with global standards while protecting the interests of investors.
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