Binance announces FIU compliance to soon restart operations in India

The dynamics of the crypto market in India are expected to mark a major shift. This comes to light as reports about Binance re-entering India surface. Binance has apparently settled the penalty of $2 million and has agreed to operate in compliance with the Prevention of Money Laundering Act (PMLA) and the Financial Intelligence Unit (FIU), respectively.

Binance, once hailed as one of the leaders in the Indian market, is now at a pivotal moment. It accounted for more than 90% of the holdings and a majority of transaction volumes. In January, the Asian country banned the crypto exchange platform from operating, citing its violations of the relevant laws. Thereby, the financial system is exposed to vulnerabilities.

The ban on Binance triggered a weekly flow of more than 2,000%. Regional platforms like CoinDCX and WazirX received the funds.

Binance was not the only platform that was banned from operating in India. It was joined by nine more offshore platforms. Kucoin has already announced its relevant compliances, with the development dating back to March 20024. Experts in the field have said that it is sad that Binance took a lot of time to understand that no one can expose any country’s financial system to vulnerabilities, adding that there is no room for negotiation there.

Binance’s dominance is evident from its record trade volume of more than $22 billion in the last single day, with the market ending on Wednesday at 7 p.m. IST. This roughly translates to 25% of the global volume.

Since Binance enabled investors to avoid the 1% TDS that applies to exchange platforms with registrations, a ban on its operations was necessary. Binance’s re-entry is being looked upon with a lot of hope that other global crypto exchange platforms will take the lead. Although names are not currently being predicted, a significant number of them may enter the Indian market in the future. It is significantly influenced by two factors: population size and trading enthusiasm.

Agreeing to comply with relevant laws in India makes Binance liable to contribute to the country’s financial monitoring system. Interested users can get started with the platform after reading our Binance review, which talks about the features, pros, and cons of the platform.

Binance is re-entering India at a time when the global crypto market is in turmoil. BTC and ETH, two of the top tokens, are heavily down from their recent ATHs. For instance, BTC has lost 3.60% in the last 24 hours, and ETH is down by 4.40% during the same time window. Nevertheless, Bitcoin Halving is expected to reverse the drop for a new peak.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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