Binance, the world's largest cryptocurrency exchange, has resumed operations for users in India after a seven-month suspension by local authorities for operating “illegally.”
The exchange said on Thursday that it had registered as a reporting entity with India's Financial Intelligence Unit (FIU), a government agency that oversees financial transactions.
India blocked nearly a dozen foreign cryptocurrency trading services, including Binance, Kraken, Kucoin, and Mexc, late last year on the recommendation of the FIU, which said foreign exchanges would have to register locally to comply with the country’s anti-money laundering and counter-terrorism financing framework.
The FIU's move comes after local cryptocurrency exchanges complained to the Indian finance ministry that they were losing business to non-compliant foreign cryptocurrency exchanges.
Binance’s website and mobile app are back online in India. Binance said in a statement that the compliance with Indian authorities marks the company’s 19th regulatory milestone.
“Registering with FIU-IND marks a significant 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 an honor to support the ongoing evolution of VDA in India by extending the reach of our cutting-edge platform to this thriving market.”
Despite India’s status as an important overseas market for global technology giants, the cryptocurrency market is relatively untapped. Over the past five years, the Reserve Bank of India has put significant pressure on banks to distance themselves from crypto companies, and the government’s stringent tax policies have significantly dampened local enthusiasm for digital assets.
Coinbase stopped onboarding Indian customers in 2023 after receiving unofficial pressure from the Reserve Bank of India.
These regulatory and financial hurdles have effectively hampered the growth of the Indian crypto ecosystem. The recent hack of local exchange and Binance partner WazirX, which resulted in the loss of nearly half of its reserves, was another major blow to local entrepreneurs’ efforts to advocate for a more crypto-friendly regulatory environment in the country.
