**Binance Returns to India Amid Regulatory Challenges**
Binance has made a comeback in India, coinciding with the country's 78th Independence Day. This marks a new chapter for crypto adoption in one of the world's fastest-growing digital economies. However, the exchange faces an $86 million tax demand from Indian authorities under the Goods and Services Tax.
In December 2023, the Indian Ministry of Financeâs Financial Intelligence Unit (FIU) issued notices to several offshore crypto exchanges, including Binance, for operating illegally. This led to the removal of Binanceâs app from the Google Play Store and Appleâs App Store in India.
To reestablish its presence, Binance paid a $2.25 million fine for violating Anti-Money Laundering (AML) regulations and assured compliance with all tax reporting processes. The exchange also plans to create a Financial Crimes Compliance unit to assist in investigating crypto-related crimes.
Richard Teng, CEO of Binance, emphasized the importance of aligning with Indian regulations to tailor services for Indian users. Experts are divided on Binanceâs return; some see it as a positive step for innovation and competition, while others worry about potential regulatory issues.
Binanceâs reentry comes as the Indian government is still shaping its long-term outlook on the crypto sector. The exchange's compliance could set a precedent for other international exchanges, potentially leading to a more balanced approach to crypto regulation in India.