Binance Resumes Operations in India After Financial Intelligence Unit Registration

Binance, the world’s largest cryptocurrency exchange, has announced the return of its website and app to the Indian market following its registration with the Financial Intelligence Unit (FIU) in May. The move marks a significant milestone for the exchange, which had previously faced restrictions in India due to regulatory issues.

Binance’s re-entry into India comes after a crackdown last year that forced several global crypto exchanges, including KuCoin, Kraken, and HTX, to halt their operations unless they registered with local authorities. KuCoin resumed its business in India in April after securing registration with the FIU and has since complied with the country’s transaction tax requirements. Binance has stated that it believes its current practices align with applicable laws and is preparing to adhere to the Tax Deductible at Source (TDS) levy introduced in 2022.

The tax, aimed at regulating cryptocurrency transactions, significantly impacted trading volumes and drew criticism from local exchanges for creating a competitive disadvantage. As Binance returns to India, it faces a shifted competitive environment, notably with WazirX, a local rival and former partner of Binance, having suspended trading, deposits, and withdrawals following a $235 million hack last month.