Cryptocurrencies

Global cryptocurrency exchange Binance has received approval to offer its services in India

Global cryptocurrency exchange Binance has received approval to offer its services in India from an Indian financial regulatory body called the Financial Intelligence Unit (FIU).

The latest approval makes Binance the second offshore cryptocurrency exchange to receive regulatory approval after KuCoin.

According to a report published in CoinDesk, Vivek Agarwal, head of the Financial Intelligence Unit, said that Binance is now a registered entity.

Binance and KuCoin were among nearly a dozen foreign cryptocurrency exchanges that received a non-compliance notice in December 2023. Within 15 days of the notice, the Indian Ministry of Finance asked its IT department to block URLs and mobile app access to the banned cryptocurrency platforms. in India. In mid-January 2024.

Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex also received the regulatory notice.

After the ban, many cryptocurrency platforms started working with the Indian regulatory body to get FIU compliance and offer their services to Indian clients. While KuCoin and Binance were able to return, companies like OKX and BitStamp closed their services in the country.

Although reports of the FIU filing emerged today, Cointelegraph reported in the third week of April that Binance will likely return to India after paying a $2 million fine for non-compliance.

Related: Taxman: New tax policies in India could be fatal for the cryptocurrency industry

After India imposed a hefty 30% tax on cryptocurrency gains and a 1% tax deduction at source on every cryptocurrency transaction, many Indian investors fled to foreign cryptocurrency exchanges to bypass the tax regime. At the peak of the tax drain, Binance reportedly accounted for 90% of total trading volume from India.

Despite having a thriving cryptocurrency market, with most of the major cryptocurrency exchanges looking to set their foot in the country, India has lagged on the cryptocurrency heat map due to its taxation and lack of regulatory clarity. A large portion of crypto traders and crypto-focused businesses have shifted offshore, while the few crypto exchanges that remain are struggling to gain investors’ trust due to lack of banking facilities.

Cointelegraph reached out to Binance and the FIU for comment, but did not receive a response at the time of publication.

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