The largest cryptocurrency exchange in the world resumed its activities in India after 7 months
Late last year, on the recommendation of India’s Financial Intelligence Unit (FIU), twelve foreign cryptocurrency exchanges, including Binance, Kraken, Kucoin and Mexc, were banned from operating in India. The Financial Intelligence Organization of India announced in a statement that foreign exchanges must be officially registered in the country to comply with anti-money laundering laws and prevent the financing of terrorism.
The move by India’s Financial Intelligence Unit came after a group of Indian digital currency exchanges complained to the Indian Finance Ministry that illegal foreign exchanges were rapidly taking their market share, which was killing India’s digital economy. will be
According to the official statement of the Binance exchange, after 7 months of the suspension of the activity of this exchange in India, the website and mobile applications of Binance have been activated again in India. The world’s largest digital currency exchange considers compliance with India’s regulations as its 19th major regulatory achievement. Binance announced that it has registered as a reporting entity with the Financial Intelligence Unit of India (FIU). FIU is a government agency responsible for monitoring financial transactions.
Richard TengCEO of Binance, stated: “Our registration at FIU-IND is an important milestone in Binance’s journey. Given the importance and potential of the Indian cryptocurrency market, aligning with Indian regulations allows us to tailor our services to the needs of Indian users. We are proud to extend the reach of our state-of-the-art platform to this thriving market and support the continued evolution of cryptocurrencies in India.”
Although India is an important country for the world’s tech giants, its digital currency market remains relatively underdeveloped. Over the past five years, India’s central bank has put a lot of pressure on banks to distance themselves from digital currency companies, and the Indian government’s implementation of strict fiscal policies has severely dampened local interest in digital assets. In another case, Coinbase blocked new Indian customers from registering on its platform in 2023 after facing what it described as unofficial pressure from India’s central bank.
These regulatory and financial hurdles have effectively stunted the growth of the Indian cryptocurrency ecosystem. The recent hack of WazirX, India’s local exchange and former Binance partner, which wiped out half of its users’ assets, was another blow to local entrepreneurs’ efforts to support a cryptocurrency-friendly regulatory environment in the country.
