Why hasn't Binance started operations in India yet, even after registering under FIU?
On May 10, news agencies and crypto Twitter accounts reported that FIU had processed and approved Binance's registration. Along with Binance, several international exchanges, including KuCoin, had been shut down in India. These exchanges could resume operations in India only after registering with FIU, complying with all conditions, and paying the imposed fines. KuCoin was the first to complete these steps.
FIU Director Vivek Agarwal stated that although Binance has registered, it still needs to comply with additional rules and conditions and pay a fine. Binance has been fined ₹18.82 crores. Binance anticipated that the upcoming elections in India might result in regulatory relaxations, but this did not happen. Besides the fine of ₹18.82 crores, Binance also faces TDS, GST, and additional penalties for delays. Consequently, Binance has officially halted its operations in India.
Complying with these rules and conditions might also affect Binance's operations and brand. For example, exchanges in India are currently not allowing crypto withdrawals, citing regulatory reasons. If Binance were to do the same, it could harm its global brand, which is why it is delaying compliance with these guidelines.
Binance has a significant brand value and a large user base in India, but it may not agree to certain conditions. Binance is carefully considering whether to comply with regulations such as providing user data and trade information or not allowing crypto withdrawals from the exchange. It does not seem likely that Binance will start its operations in India soon.
