Binance Latest Updates :
Global crypto exchanges, including Binance, are resuming operations in India after being banned late last year for failing to register with local authorities. Binance, the world’s largest cryptocurrency exchange, announced on Thursday, August 15, that its website and app are now accessible in India following its registration with the Financial Intelligence Unit (FIU) in May. KuCoin, another major exchange based in Seychelles, restarted its Indian operations in April after completing its FIU registration, according to a company spokesperson.
As part of the registration, these exchanges are now required to collect a transaction tax, introduced in 2022, from their clients. KuCoin confirmed that it has been collecting this tax since it resumed operations, while a Binance representative stated that the company believes its current practices comply with applicable laws. This tax, known as Tax Deductible at Source (TDS), led to a sharp decline in trading volumes in India and prompted complaints from local exchanges about being put at a competitive disadvantage.
India cracked down on nine offshore cryptocurrency exchanges late last year, declaring them illegal for operating without FIU registration. The list included Binance, KuCoin, Kraken, and HTX.
Binance’s return comes amid a shifting competitive environment in India. WazirX, a former partner and local competitor, has suspended all trading, withdrawals, and deposits following a $235 million hack last month.
Binance restarts India business (FAQs)
Why were Binance and other crypto exchanges banned in India last year?
Binance and other exchanges were banned because they had not registered with the Financial Intelligence Unit (FIU), which is required to operate legally in India.
What does it mean for a crypto exchange to register with the FIU in India?
Registering with the FIU allows a crypto exchange to operate legally in India and requires the exchange to comply with local regulations, including the collection of certain taxes.
When did Binance resume its operations in India?
Binance resumed its operations in India on August 15, 2024, after registering with the FIU in May.
What other global crypto exchanges have restarted operations in India?
KuCoin, headquartered in Seychelles, restarted its operations in India in April 2024 after registering with the FIU.
What is the Tax Deductible at Source (TDS) that crypto exchanges must collect?
TDS is a transaction tax introduced in 2022 that registered crypto exchanges in India must collect from their clients as part of the compliance requirements.
How has the TDS affected the crypto market in India?
The introduction of TDS led to a significant drop in trading volumes in India and caused complaints from local exchanges about being at a competitive disadvantage.
What happened to WazirX, Binance’s former partner in India?
WazirX suspended trading, withdrawals, and deposits after suffering a $235 million hack in July 2024, affecting its operations in India.
Why is it important for crypto exchanges to comply with Indian regulations?
Compliance with Indian regulations ensures that crypto exchanges can operate legally and avoid penalties or bans from authorities, allowing them to serve the Indian market.
What challenges do global crypto exchanges face when operating in India?
Challenges include navigating complex regulatory requirements, such as registering with the FIU, collecting TDS, and competing with local exchanges that are already established in the market.
How does FIU registration impact the operations of crypto exchanges?
FIU registration mandates that exchanges follow certain compliance protocols, including tax collection and reporting, which can affect their operational costs and strategies.
What is the significance of the competitive landscape change in India’s crypto market?
The suspension of WazirX’s operations and the return of global players like Binance alters the dynamics of the market, potentially affecting market share and user preferences.
What does Binance’s return mean for Indian crypto traders?
Binance’s return provides Indian crypto traders with access to one of the world’s largest exchanges, offering a wide range of trading options, security features, and liquidity.