Binance sets its sights on India once again, after a 4-month ban imposed by the nation’s Financial Intelligence Unit (FIU)
Insiders revealing that a prominent exchange has agreed to pay a hefty $2 million penalty to a regulatory body for failing to meet compliance standards. The exact calculation of the fine has yet to be confirmed by these sources. The Indian crypto scene has been booming, with a recent Chainalysis report ranking it as one of the top emerging economies in the world.
In fact, by 2023, it is projected to have the highest adoption rate. And now, with its triumphant return, Binance is set to become the second foreign cryptocurrency exchange to enter this lucrative market, hot on the heels of KuCoin, which has already obtained FIU compliance.
The crypto world was rocked when India’s top exchange, Binance, was suddenly banned in January. With a whopping 90% share of the Indian market, Binance had become a household name for traders looking to dodge the government’s strict tax laws.
Rumor has it that the surge in popularity was fueled by the massive amount of tax evasion caused by unregistered foreign exchanges, resulting in a staggering INR 3000 crores in lost revenue every year. This alarming statistic was a major driving force behind the Financial Intelligence Unit’s decision to put an end to unregistered foreign exchanges in the country.
According to a well-informed insider, it’s a pity that Binance took over two years to come to the realization that there is no bargaining room for them. They should have known that no international giant can demand preferential treatment, especially if it puts the country’s financial system at risk.
Binance is now playing by the same rules as our local cryptocurrency exchanges. This means that they will also be subject to a 1% tax deduction at source (TDS), just like KuCoin and other Indian exchanges.
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India Shakes Up Crypto World with FIU Ban on Major Exchanges! KuCoin and Binance Bow Down, But OKX Takes a Stand. Find Out Why in Their Shocking Email to Customers.
FIU cracks down on foreign exchanges, leaving crypto investors in limbo. While two major exchanges, KuCoin and Binance, have succumbed to the pressure, OKX takes a stand and shuts down all operations in India. In a shocking move, the platform blames strict regulations for their decision in a heartfelt email to their loyal customers.
According to Sumit Gupta, CEO of CoinDCX, recent developments have been put in place to ensure that crypto exchanges abide by regulations like the Prevention of Money Laundering Act (PMLA). This is a crucial step towards creating a more compliant ecosystem. Gupta emphasizes the importance of regulatory compliance, stating that it will be a driving force in establishing a sustainable and thriving crypto environment in India.