In January, the government of India banned 9 foreign exchanges for not following FIU compliance, which included Binance the world’s largest exchange banned in India due to regulatory issues for which it has also indicated withdrawal. Binance will return after almost four months of being banned. For which Binance has to pay a penalty of approximately $2 million.
Industry experts believe that the return of Binance can increase the dynamism of the Indian crypto market, as its arrival can increase competition in the Indian crypto market. This will be the strongest comeback because the market is moving towards a Bull Run. New investors showing interest and return of foreign exchanges may also increase competition in the Crypto Market.
The Binance exchange has to register with the Financial Intelligence Unit (FIU) in India. Also, Binance has to comply with all applicable laws in India, including the Prevention of Money Laundering Act (PMLA) and the VDA taxation framework.
Besides this, Binance plans to introduce payment solutions, create a dedicated Indian team, and invest more in the country’s blockchain system.
Binance isn’t the first exchange to make a comeback after being banned by the government. Earlier, KuCoin also made a comeback agreeing to follow the compliance of the Financial Intelligence Unit (FIU) of India. With this, KuCoin has become the first global exchange to do so.
While others are coming back, OKX has announced goodbye to India. Recently, OKX has asked all Indian users to close their accounts and withdraw funds before April 30. Now, it remains to be seen whether other exchanges will also return to India like Binance and KuCoin or will say goodbye like OKX.
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