Alex Omenye
The world’s largest cryptocurrency exchange, Binance, is poised to re-enter the Indian market after agreeing to pay a $2 million fine and registering as a Financial Intelligence Unit firm, as per a recent report.
Following a crackdown by India’s Financial Intelligence Unit, Binance and nine other crypto exchanges were removed from the Apple store and effectively banned after receiving compliance show cause notices.
Apart from Binance, other firms such as OKX, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex were also served notices at the time. By paying the fine and committing to register as an FIU firm, Binance aims to resume operations in India while adhering to the country’s financial regulations and laws.
The report highlights the significance of Binance’s compliance with Indian financial regulations, emphasizing that no global powerhouse can expect special treatment at the expense of exposing the country’s financial system to vulnerabilities.
Furthermore, Binance will need to comply with India’s Prevention of Money Laundering Act (PML Act) and Virtual Digital Assets taxation framework.
Binance’s recent troubles extend beyond India, as the platform has faced scrutiny from various countries over allegations of money laundering and other financial improprieties.
In response to these challenges, Binance’s CEO, Changpeng Zhao, stepped down, paving the way for a new leadership team as part of the company’s rebranding efforts.
Currently, Binance is embroiled in a dispute with the Nigerian government over accusations of currency manipulation and money laundering. This conflict led to the detention of two Binance executives in Nigeria, who now face charges in Nigerian courts related to the alleged offenses.
