Binance Could Be Close To Re-entering India But With A Potential $2 Mn Fine

Binance, a cryptocurrency giant banned by the central government in January, is attempting to re-enter the Indian market.

What Happened: The company plans to register with the Financial Intelligence Unit (FIU) and is prepared to pay a penalty of up to $2 million (₹16.7 crore), sources close to the situation have told ET.

The firm has pledged to adhere to all relevant regulations, including the Prevention of Money Laundering Act (PMLA) and VDA taxation rules, which it had previously disregarded. Officials emphasized the clear regulatory expectations for global cryptocurrency exchanges operating in India — strict compliance with local laws is mandatory.

A source told ET that it was unfortunate that Binance took more than two years to recognize that negotiations for special treatment were not feasible, particularly when such talks could threaten the country's financial security.

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Why It Matters: Although officials have not confirmed the exact details of the $2-million penalty, this development marks a significant turnaround for Binance, which previously accounted for nearly 90% of the estimated $4 billion (₹33,412 crore) in crypto holdings by Indian nationals.

This dominance was mainly due to its failure to comply with tax laws, allowing investors to evade the 1% tax deducted at source (TDS) required on registered exchanges.

Binance aims to follow in the footsteps of Seychelles-based Kucoin, which was the first offshore exchange to register in India last month, resulting in the lifting of its ban.

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