Binance, the global cryptocurrency exchange, has received approval from the Indian financial regulator, the Financial Intelligence Unit (FIU), to offer its services in India. This makes Binance the second offshore crypto exchange to gain regulatory approval, following KuCoin. The head of the FIU, Vivek Agarwal, confirmed that Binance is now a registered entity. In December 2023, Binance and KuCoin, along with several other foreign crypto exchanges, received a notice of noncompliance. As a result, the Indian Finance Ministry instructed its IT department to block access to the banned crypto platforms in mid-January 2024. However, Binance and KuCoin worked with the Indian regulatory body to obtain FIU compliance and resume their services in the country. Other exchanges, such as OKX and BitStamp, decided to close their services in India. Cointelegraph reported in April that Binance would likely return to India after paying a $2 million fine for noncompliance. India’s crypto industry has faced challenges due to high taxes on crypto gains and a lack of regulatory clarity, leading many Indian investors to use foreign exchanges to avoid the tax regime. Despite this, India still has a thriving crypto market, with major exchanges eager to enter the country. However, the lack of banking facilities has made it difficult for these exchanges to gain investor trust. Binance and the FIU have not yet responded to requests for comment.
Binance's Return to India Approved by FIU