With its significant trading volume, Binance, the world’s largest cryptocurrency exchange, is taking steps to reenter the Indian market. According to the Economic Times, Binance has agreed to pay a $2 million fine as part of its reintegration process into the Indian market, based on sources close to the matter.
Preparing to Return to the Indian Market After the Ban
The crypto exchange’s effort to return to the Indian market requires restructuring its South Asian establishment to fully register with India’s Financial Intelligence Unit (FIU), which is responsible for regulating cryptocurrency trading in the country. This initiative follows Binance’s commitment to comprehensively comply with all relevant regulations, including India’s anti-money laundering and taxation laws.
As known, the Indian government had taken action in January by blocking the websites of nine cryptocurrency exchanges, including Binance, for operating illegally in the country by not complying with local regulatory requirements. This regulatory stance resulted in the removal of cryptocurrency exchange mobile applications from Apple and Google’s app stores in the region.
Despite facing challenges, Binance South Asia announced via its official X account that the cryptocurrency exchange continues to work with regulators worldwide to comply with regulations and maintain service accessibility, thus opening the door for a return to the Indian market.
Held About 90% Market Share in the Country
According to the Economic Times, before being banned, Binance held about 90% of the estimated $4 billion trading volume generated by Indian investors, securing a significant market share.
The dominance of the cryptocurrency exchange in the Indian market was reportedly high due to its non-compliance with the country’s tax laws and allowing users to trade cryptocurrencies without adhering to the mandatory 1% tax deducted at source.
