Crypto Giant Binance Pays Hefty $2M Fine To Reignite India Foothold – Details
Binance, the world’s leading cryptocurrency exchange, reportedly seeks to re-establish its presence in the Indian market after being banned by the country’s local government earlier this year.
Binance’s Cost To Return To India
According to a recent report from India’s Economic Times, the exchange intends to return as a registered entity, aiming to comply with the country’s anti-money laundering laws and tax regulations.
This strategic move entails paying a hefty $2 million penalty as part of its efforts to “reform” its South Asian entity.
Notably, this development follows the Indian government’s action against 9 crypto websites, including Binance, in January for their alleged involvement in illegal operations that violated local regulations. This crackdown led to the removal of crypto exchange apps from the region’s Apple and Google stores.
Despite these challenges, Binance South Asia’s X account noted in January that the exchange remains “committed to regulatory compliance” and is working towards full registration with India’s Financial Intelligence Unit, which oversees digital asset trading activities.
We are aware of new changes that have been introduced regarding crypto exchanges on the iOS App Store in India, impacting the Binance App.
The ongoing situation is not unique to #Binance and we remain committed to complying with local regulations and maintaining dialogue with…
— Binance South Asia (@BinanceDesi) January 10, 2024
The exchange also discloses that it seeks to adhere to all applicable regulations, including anti-money laundering measures and tax laws, to ensure a “smooth re-entry” into the Indian market.
Global Expansion And Asset Management Evolution
The decision to re-enter the Indian market comes amid the exchange’s broader strategic shifts and global expansion efforts. Recently, the exchange secured a full crypto license in Dubai, marking its official entry into the Middle Eastern market.
This development follows co-founder Changpeng Zhao’s agreement to relinquish voting control in the local entity, paving the way for regulatory approval. According to the report, the crypto exchange’s expansion into Dubai aligns with its vision to establish a “strong presence” in key global markets and diversify its geographical footprint.
#Binance is proud to have received a Virtual Asset Service Provider (VASP) licence from Dubai’s Virtual Assets Regulatory Authority (VARA).
This milestone allows us to extend our services to the retail market alongside qualified and institutional investors.
Read more ⤵️
— Binance (@binance) April 18, 2024
The exchange has significantly changed its asset management strategies, notably converting its entire Secure Asset Fund for Users (SAFU) into USDC, a stablecoin pegged to the US dollar.
As reported, the SAFU fund, established in 2018 to safeguard user assets during extreme situations, has transitioned to USDC to “enhance transparency, reliability, and stability.”
Featured image from Unsplash, Chart from TradingView
