Leading global cryptocurrency exchange Binance has achieved a significant milestone in India by registering as a reporting entity with the Financial Intelligence Unit (FIU-IND). This marks its 19th global regulatory achievement.
“Binance goes live in India. Binance is now registered as a reporting entity with India’s Financial Intelligence Unit … Our website and app are now fully available for Indian users.” Binance stated on the social media platform X earlier this week
Binance’s registration underscores its unwavering commitment to upholding anti-money laundering (AML) standards and maintaining regulatory compliance globally.
“Our registration with the FIU-IND marks an important milestone in Binance’s journey. Recognizing the vitality and potential of the Indian VDA [virtual digital asset] market, this alignment with Indian regulations allows us to tailor our services to the needs of Indian users. It is a privilege to extend the reach of our cutting-edge platform to this thriving market, supporting India’s continued VDA evolution.” commented Binance CEO Richard Teng
However, the exchange still faces an $86 million tax demand from Indian authorities under the Goods and Services Tax. The tax demand on Binance arises from its classification as an online information database access or retrieval (OIDAR) service provider, which is subject to GST in India.
Binance’s earnings from transaction fees charged to Indian customers were substantial, reportedly amounting to at least $476 million, according to a report by the Times of India. These fees were credited to Nest Services Limited, a Binance Group Company based in Seychelles.
“We are aware of certain media reports circulating regarding tax notices being issued by Indian GST authorities to global crypto platforms. Binance would like to clarify that it is, and has always been, committed to adhering to relevant domestic legislations applicable to us.” said Binance in response to the reports
“Our commitment to stringent regulation forms a fundamental part of our business strategy. It’s about fostering a secure, transparent, and efficient environment.” Teng added.
Binance’s Indian user base can now tap into its entire range of services, underscoring the company’s ambitious plans to capitalize on the vast potential of India’s rapidly expanding digital asset landscape.
Besides this, Binance’s entry into the Indian market comes on the heels of a $2.25 million penalty imposed by the FIU-IND for non-compliance with anti-money laundering norms.
In November 2023, former Changpeng Zhao resigned as the CEO of Binance and pleaded guilty to one felony charge as part of a settlement with US authorities. Binance agreed to pay $4.3 billion for “civil regulatory enforcement actions,” and CZ is barred from serving as an executive at any crypto firm in the future.
In April, Zhao was sentenced to four months in prison by U.S. District Judge Richard Jones in Seattle. As of Aug. 22, the US Federal Bureau of Prisons listed the former Binance CEO as an inmate of the Residential Reentry Management Long Beach field office.
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