The biggest cryptocurrency exchange in the world, Binance, has started doing business again for users in India after being shut down for seven months for “illegally” doing business in the country.
The exchange said on Thursday that it has registered with India’s Financial Intelligence Unit (FIU), a government body whose job it is to look into financial transactions.
At the FIU’s suggestion, India shut down about a dozen foreign cryptocurrency trading services at the end of last year. These included Binance, Kraken, Kucoin, and Mexc. The FIU said that offshore exchanges had to register in the country to follow the rules for stopping money laundering and funding terrorists.
A group of local crypto exchanges told the Indian Ministry of Finance that they were losing business to foreign crypto exchanges that weren’t following the rules. This is what led the FIU to act.
In India, both Binance’s website and mobile apps can now be used again. In a statement, Binance said that meeting the requirements of the Indian government is the 19th legal milestone for the company.
Binance’s CEO, Richard Teng, said in a statement, “Our registration with the FIU-IND marks an important milestone in Binance’s journey.”
“Because we know the Indian VDA market is strong and has a lot of potential, we’re aligning our services with Indian laws so that we can better meet the needs of Indian users.” It is an honour to be able to bring our cutting-edge platform to this growing market and help India’s VDA continue to grow.
India is an important foreign market for global tech giants, but its cryptocurrency market is still not very developed. In the past five years, the Reserve Bank of India has put a lot of pressure on banks to stay away from bitcoin companies. At the same time, the government’s strict tax policies have made people in India much less interested in digital assets.
In 2023, Coinbase stopped letting people from India sign up because it said it was getting “informal pressure” from the Indian central bank.
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The rise of India’s crypto ecosystem has been slowed down by these regulatory and financial problems. A recent hack at WazirX, a local exchange and former partner of Binance, caused almost half of its funds to be lost. This was another big setback for local business owners who are trying to make the country’s regulations more crypto-friendly.
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