Binance Returns to India With FIU Registration and Compliance Commitment

According to a blog post published Thursday, Binance has formally commenced operations in India following its registration as a reporting organization with the Financial Intelligence Unit (FIU-IND). This development is Binance’s nineteenth worldwide regulatory milestone.

The FIU-IND fined the top cryptocurrency exchange in the world before this registration for not adhering to legal requirements. In June, the FIU penalized Binance $2.25 million for failing to comply with the provisions of the Prevention of Money Laundering Act, which include reporting suspicious activity and maintaining records.

#Binance goes live in India 🇮🇳

Binance is now registered as a reporting entity with India's Financial Intelligence Unit, marking our 19th global regulatory milestone!

Our website and app are now fully available for Indian users.

Read more 👇https://t.co/samyDmwwut

— Binance (@binance) August 15, 2024

Binance banned in India

Binance and eight other cryptocurrency exchanges that neglected to register with law authorities in January had their website URLs and mobile applications disabled by the FIU-IND, a government organization tasked with gathering intelligence on financial offenses.

In April, an unverified rumor surfaced that Binance intended to return to India and pay the $2.25 million fine assessed by the FIU for noncompliance. Although Binance registered with the Indian government body, the exchange did not clarify if it was required to pay the fine for noncompliance that had been previously assessed.

Regarding Binance’s warmly welcomed return to India, CEO Richard Teng stated:

“Recognizing the vitality and potential of the Indian virtual digital asset market, this alignment with Indian regulations allows us to tailor our services for Indian users.”

Bouncing back with Indian authorities

The registration process officially started in May, just a few months after Binance and eight other exchanges were prohibited by the nation’s Prevention of Money Laundering Act (PMLA). Provisional clearance was given, but it had to pay a fee for serving Indian clients without following the nation’s anti-money laundering regulations. In June, the fine amount was decided. 

According to the company’s statement, 

“This registration underscores Binance’s commitment to adhering to anti-money laundering (AML) standards and fostering a secure, transparent, and efficient ecosystem.”

Like the other prohibited businesses, KuCoin had to pay a fine to clear its FIU-IND record. The penalty for KuCoin was $41,000.

Binance has been settling disagreements with financial regulators in the world’s major markets. Last year, it paid $4.3 billion to the United States to resolve criminal allegations of violating sanctions and money-transmitting rules. Changpeng “CZ” Zhao, the founder, resigned as CEO in the settlement and received a four-month jail sentence in April.

“Our commitment to stringent regulation forms a fundamental part of our business strategy. It’s about fostering a secure, transparent, and efficient environment,” CEO Richard Teng said.

Indian customers may now use Binance’s website and app, which provide a comprehensive variety of services, following registration. According to the company, the action demonstrates Binance’s strategic intent to grow its footprint in essential areas and adhere to local laws.

To protect consumers and raise industry standards, Binance will introduce its stringent anti-money laundering (AML), countering the financing of terrorism (CFT), and know-your-customer (KYC) protocols in India.