Anika Begay
Binance, the world’s largest cryptocurrency exchange, has resumed operations for users in India after a seven-month hiatus imposed by local authorities for operating “illegally” in the country.
The exchange said on Thursday it has registered as a reporting entity with India’s Financial Intelligence Unit (FIU), a government agency tasked with scrutinizing financial transactions.
India blocked nearly a dozen foreign cryptocurrency exchanges late last year on the recommendation of the FIU. The FIU’s move followed a group of local cryptocurrency exchanges complaining to the Ministry of Finance that they were losing business due to non-compliant foreign cryptocurrency exchanges.
Binance’s website and mobile apps are back up and running in India. In a statement, Binance said the compliance with the Indian regulator marks the 19th regulatory milestone for the company.
“Our registration with FIU-IND marks an important milestone in Binance’s journey,” said Richard Teng, CEO of Binance, in a statement.
“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 the continued evolution of India’s VDA.”
Despite India’s status as a key overseas market for global tech giants, its cryptocurrency sector remains relatively underdeveloped. Over the past five years, the Reserve Bank of India has put significant pressure on banks to distance themselves from cryptocurrency firms, while the government’s implementation of stringent tax policies has significantly dampened local enthusiasm for digital assets.
These regulatory and tax hurdles have effectively stunted the growth of India’s crypto ecosystem. The recent hack of WazirX, a local exchange and separate partner of Binance, where nearly half of its reserves were lost, was another blow to local entrepreneurs’ efforts to advocate for a more crypto-friendly regulatory environment in the country.
