Binance Resumes Operations in India After Seven-Month Regulatory Pause

Binance, the world’s leading cryptocurrency exchange, has recommenced its services in India following a seven-month suspension imposed by local authorities for allegedly operating without proper authorization.

On Thursday, Binance announced its registration as a reporting entity with India’s Financial Intelligence Unit (FIU), a government body responsible for monitoring financial transactions.

Last year, India blocked nearly a dozen foreign crypto exchanges, including Binance, Kraken, Kucoin, and Mexc, based on FIU’s recommendations. The FIU mandated that offshore exchanges must register locally to comply with India’s anti-money laundering and counter-terrorism financing regulations.

This move came after local crypto exchanges complained to the Indian Ministry of Finance about losing business to non-compliant foreign exchanges.

Binance’s website and mobile apps are now operational in India. The exchange stated that compliance with Indian authorities marks its 19th regulatory milestone.

“Our registration with the FIU-IND is a significant milestone in Binance’s journey,” said Richard Teng, CEO of Binance. “Recognizing the potential of the Indian VDA market, this alignment with Indian regulations allows us to tailor our services to Indian users. It is a privilege to extend our platform to this thriving market, supporting India’s VDA evolution.”

Despite India’s importance to global tech giants, its cryptocurrency market remains underdeveloped. Over the past five years, the Reserve Bank of India has pressured banks to distance themselves from cryptocurrency firms, and stringent tax policies have dampened local enthusiasm for digital assets.

Coinbase ceased signing up customers from India in 2023 due to informal pressure from the Indian central bank.

These regulatory and fiscal challenges have stunted the growth of India’s crypto ecosystem. The recent hack at WazirX, a local exchange and former Binance partner, where nearly half its reserves were lost, further hindered efforts to advocate for a more crypto-friendly regulatory environment.