Crypto exchange Binance has registered with India’s Financial Intelligence Unit (FIU) as a reporting entity, after settling a $2.25 million fine with the agency earlier in the year.
Binance CEO Richard Teng described the registration as an “important milestone” for the exchange in a statement shared with Decrypt, adding that “this alignment with Indian regulations allows us to tailor our services for Indian users.”
In a blog post, Binance announced that its app and website are now “fully available for Indian users,” lauding the exchange’s “world-class compliance program.”
“Our commitment to stringent regulation forms a fundamental part of our business strategy,” said Teng in a statement accompanying the news, adding that, “It’s about fostering a secure, transparent, and efficient environment.”
Binance in India
Binance was effectively banned from India alongside eight other crypto exchanges in December 2023, after the Financial Intelligence Unit accused them of operating illegally by failing to both register with the FIU and comply with the country’s anti-money laundering (AML) and anti-terrorist financing regulations.
In June, the FIU fined Binance 188.2 million rupees ($2.25 million) for failing to adhere to its “stautory obligations” under the country’s Prevention of Money Laundering Act (PMLA). In its order, the regulatory agency noted that “specific directions” were issued to Binance regarding its compliance with its rules for preventing money laundering and terrorist financing.
Binance, along with fellow crypto exchange KuCoin, was approved by the FIU in May, contingent on the firm settling its fine with the regulatory agency. KuCoin paid a fine of $41,000 and resumed operations in May.
Binance faces further challenges in India, with the country’s tax authorities recently issuing a notice demanding a Goods and Service Tax (GST) of $86 million from the exchange.
A spokesperson for the exchange said that the firm is “cooperating” with Indian authorities, adding that the firm is “committed to adhering to relevant domestic legislations applicable to us.”
