Binance Resumes Operations In India After Settling $2.25 Million Penalty

Binance, the world’s largest cryptocurrency exchange, has officially resumed operations in India after paying a $2.25 million penalty to the country’s Financial Intelligence Unit (FIU). The platform is back online after registering as a reporting entity with India’s Financial Intelligence Unit (FIU), a key government body responsible for overseeing compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) laws.

The suspension, which began late last year, affected nearly a dozen major foreign crypto exchanges, including Kraken, Kucoin, and Mexc. The FIU had flagged these platforms for operating in India without proper registration, which led to their shutdown at the recommendation of the Indian authorities. This crackdown followed complaints from local cryptocurrency exchanges, which argued that they were losing business to these non-compliant foreign entities.

In a blog post released today, Binance announced that its website and mobile app are now fully accessible to Indian users. The exchange has registered as a "reporting entity" with the FIU, signaling its commitment to adhering to India’s anti-money laundering (AML) and counter-terrorism financing (CFT) laws.

With its services restored, Binance has now achieved its 19th regulatory milestone globally, according to Richard Teng, the company’s CEO. "Our registration with the FIU-IND marks an important milestone in Binance’s journey. Recognizing the vitality and potential of the Indian VDA market, this alignment with Indian regulations allows us to tailor our services to the needs of Indian users. It is a privilege to extend the reach of our cutting-edge platform to this thriving market, supporting India’s continued VDA evolution," Teng said in a statement.

Binance’s return to the Indian market could mark a turning point, as the exchange seeks to capitalize on the country’s potential while navigating its complex regulatory environment. The company’s decision to comply with local regulations may also encourage other international crypto platforms to follow suit, potentially revitalizing India’s crypto market and fostering a more secure and regulated environment for digital asset trading.