Binance to Resume Operations in India and get FIU compliant

In Dec'23 a total of 9 International crypto exchanges were banned by the Indian government in India. This action was taken by the FIU which is known as a financial intelligence unit based out in India and they had blocked the URL for these nine international cryptocurrency exchanges. Some of the international exchanges were doing good in the country as they had quite a big along with significant trading volume. After this URL block users had to struggle and many of them returned to the Indian exchanges which resulted in a trading volume increase on Indian exchanges. Some of the Indian exchanges also improved their platform and services which is good, but these international exchanges are not giving up and probably it is because India is one of the biggest crypto markets for them. Last month we saw an update that Kucoin is registered in India, and it is FIU compliant. They have also started deducting with tax which is 1% TDS.

Now Binance is about to restart its operations in India and it's another good news for the Indian crypto community. As per the news update, the exchange would be paying a penalty of about $2 million and get FIU and PMLA compliant. Binance is a leading crypto exchange that offers the best of the services in the industry, and this is why users prefer to use the exchange. This is the second crypto exchange that is coming back to India, and they are going to be registered in the country however they are not going to have a physical presence, but they will be compliant with all rules and regulations.

Binance, banned by the Indian government in January, is looking to resume its operations in the country by paying a penalty of around $2 Mn

This may be slightly bad news for the Indian exchanges because now they will have to up their game if they want to compete in the market. Currently, some of the Indian exchanges are not doing good and they are not able to provide a platform where users can perform the trade without any issues. It is known that Indian exchanges are struggling with the banking system and even after getting registered and compliant with the government rules the banking system is not providing them the required support. This is one part but apart from this some of the exchanges are providing poor services to the users in India and now with the re-entry of these international exchanges things are going to be competitive.

I believe that this competition is good because this will push the Indian exchanges to improve themselves if they want to be part of this business otherwise, they will lose the user base which will affect their business undoubtedly. I like using the Binance exchange because of its volume and many other services and to be honest, I never had any issues with this exchange ever since the time I have been using it. I also had bad experiences with some Indian exchanges in the past where their support was not at all good, but I can vouch for finance that I never had any issues with their support and overall user experience. Indian crypto industry is growing faster, and we certainly need more exchanges to deal with this fast-paced growth and not the exchanges that are not able to provide services that are not up to the mark.

I am happy to see this news and as of now no official update from the exchange about when they are going to resume the operation but surely since this discussion has already been started hence hopefully, we will see more updates coming in. Something must be in process and hopefully in the coming months we will have more updates about it where the Indian users are going to get access again to this leading exchange which is going to be an exciting move. Let's be ready and hopeful to see these exchanges going live again for the Indian crypto community.

Thank you

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