Binance to Pay $2 Million to Resume Operations in India, Aims for FIU Compliance
- Binance aims to reestablish its presence in India by registering with the Financial Intelligence Unit (FIU) after previously being barred due to non-compliance.
- To facilitate this return, Binance is prepared to pay a $2 million penalty, signaling its commitment to adhering to India's regulatory requirements.
In January, the Financial Intelligence Unit (FIU) of India barred Binance and eight other offshore cryptocurrency platforms from operating in the country via websites and mobile apps. This decision was due to their non-compliance with FIU and PMLA regulations.
However, as per a report by ET, Binance, the world’s largest cryptocurrency exchange, plans to resume its operations in India by paying a $2 million penalty. The goal is to reestablish its presence in the country as a business registered with the Financial Intelligence Unit (FIU) of the Finance Ministry.
The same report also suggests that, one of the officials familiar with the situation commented that it is regrettable it took Binance over two years to understand that negotiations were not an option and that no global entity should expect special treatment, particularly if it risks the nation's financial stability.
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On March 23, the offshore cryptocurrency exchange KuCoin announced its compliance with the Financial Intelligence Unit (FIU) of India, becoming the first global crypto exchange in the country to meet these regulations. This comes months after the exchange was issued a show-cause notice along with Binance for failing to adhere to local anti-money laundering regulations.
Edited by Harshajit Sarmah
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