Binance, the world’s leading cryptocurrency exchange, would have seeks to re-establish its presence in the Indian market after being banned by the local government of the country earlier this year.
Cost of returning Binance to India
According to a recent report from India’s Economic Times, the exchange intentions revert as a registered entity, with the aim of complying with the country’s anti-money laundering laws and tax regulations.
This strategic move involves paying a hefty fine of $2 million as part of its efforts to “reform” its South Asian entity.
In particular, this development follows Indian government action against 9 crypto websites, including Binance, in January for their alleged involvement in illegal operations that violated local regulations. This crackdown led to the removal of cryptocurrency trading apps from Apple and Google stores in the region.
Despite these challenges, Binance South Asia’s Account digital assets.
We are aware of the new changes introduced regarding crypto exchanges on the iOS App Store in India, affecting the Binance app.
The current situation is not specific to #Binance and we remain committed to respecting local regulations and maintaining dialogue with…
– Binance South Asia (@BinanceDesi) January 10, 2024
The exchange also reveals that it seeks to comply with all applicable regulations, including anti-money laundering measures and tax laws, to ensure a “smooth re-entry” into the Indian market.
Global Expansion and evolution of asset management
The decision to re-enter the Indian market comes amid struggles in the stock market. broader strategic changes and global expansion efforts. Recently, the exchange obtained a full crypto license in Dubaimarking its official entry into the Middle East market.
The development follows co-founder Changpeng Zhao’s agreement to relinquish voting control in the local entity, paving the way for regulatory approval. According to the report, the crypto exchange’s expansion into Dubai aligns with its vision of establishing a “strong presence” in major global markets and diversifying its geographic footprint.
#Binance is proud to have received a Virtual Asset Service Provider (VASP) license from the Virtual Assets Regulatory Authority (VARA) in Dubai.
This step allows us to extend our services to the retail market alongside qualified and institutional investors.
Read more ⤵️
– Binance (@binance) April 18, 2024
The exchange has significantly changed its asset management strategies, including convert your entire Secure Asset Fund for Users (SAFU) into USDCa stablecoin pegged to the US dollar.
As reported, the SAFU fund, established in 2018 to protect user assets in extreme situations, was transferred to USDC to “improve transparency, reliability and stability.”
Featured image from Unsplash, chart from TradingView
