Binance Resumes India Operations After $2M Fine: Report
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Binance, the world’s largest cryptocurrency exchange, is set to return to India after being banned earlier. According to the local report, Binance will pay a penalty of around $2 million to re-enter the market to ensure compliance with the Prevention of Money Laundering Act (PMLA) and VDA. This move is significant as it indicates a shift towards regulatory compliance and maturity in the cryptocurrency industry.
Binance’s Return to India
In January, the Indian government blocked nine crypto websites for not following local rules. As a result, Apple and Google removed crypto exchange apps in the region. Binance, after the re-entry, has committed to complying with all relevant regulations. Binance South Asia’s X account said they’re committed to following rules and talking with regulators to keep their services available.
Impact on Crypto
However, before the ban, Binance was the top choice for many Indian crypto enthusiasts, holding a whopping 90% share of the country’s $4 billion crypto market. Its appeal stemmed from its lax stance on tax compliance, letting users trade without worrying about taxes.
By not following tax laws, Binance allowed investors to skip the mandatory 1% tax deduction at source (TDS) on registered exchanges. With Kucoin leading the way by registering in India, Binance hopes to do the same, paving the path to possibly getting back in business and playing by the rules.
A Fresh Start
Experts believe Binance’s comeback could change the market, bringing in better tech and more money flow than local exchanges. This is happening just as Bitcoin and Ethereum are hitting record highs. Binance aims to make things easier by adding local payment options, setting up teams in India, and investing in the country’s blockchain ecosystem.
Now, with plans to adhere to regulations, Binance aims to reintroduce its services, potentially reshaping the market dynamics. This comeback aligns with a broader trend of financial regulators worldwide approving crypto-related assets, marking a positive development for India’s crypto space.
Filed under: Bitcoin - @ April 18, 2024 6:24 am