Binance, a cryptocurrency exchange is getting ready to come back to India After being banned for a while in the Indian market, preparing to pay a fine of $2 million. However, Besides this, Binance has taken a step that could improve its standing with the Indian government.
Recently, the Enforcement Directorate (ED) in India cracked down on an online scam app named E-Nuggets, seizing around $10 million. What's particularly noteworthy is that Binance, along with ZebPay and WazirX helped ED in uncovering this significant scam.
According to reports, E-Nuggets had approximately $10 million stored across 70 different cryptocurrency wallets associated with these three exchanges. The ED reached out to them to block these wallet addresses and transfer the crypto assets to the agency's wallet, and all three exchanges cooperated. By assisting in exposing a scam app, Binance seems to be trying to demonstrate to the Indian government its commitment to following all regulations and also aiding in stopping any illegal activities. This fits with Binance's plan to meet all of India's conditions before fully coming back into the market.
Binance aims to get back in the good books of the Indian government. After being banned in India for about four months now again Binance is fully prepared to return. Recently, the Binance Exchange paid a fine of $2 million for this purpose. Binance is ready to comply with all the conditions set by the Indian government for its return, including registration with the Financial Intelligence Unit (FIU), paying penalties, and following all applicable laws in India, such as the Prevention of Money Laundering Act (PMLA) and the VDA Taxation Framework.
In doing so, assisting the Enforcement Directorate (ED) in cracking down on a scam app is also part of Binance's strategy. This sends a message to the Indian government that Binance not only intends to abide by all necessary rules in India but also is willing to assist the government in preventing any illegal activities.
According to Coin Gabbar, Binance understands that to capture big markets like India, it must comply with all the conditions set by the Indian government. If it falls behind in doing so, it might face expulsion from the country. However, considering the current situation, being excluded from significant markets like India could be detrimental for any crypto exchange, especially for Binance, which is the world's largest crypto exchange.
Therefore, Binance is not only willing to stand by all rules and regulations in India but also planning to introduce payment solutions, establish a dedicated Indian team, and invest in India's blockchain system. It can be hoped that Binance will soon be included in the good books of the Indian government and may receive some concessions from the Indian government in the future. This step will help Binance run its operations smoothly in significant countries like India.
