Binance has reportedly planned to return to India with a $2 billion penalty.
The exchange will return as an entity registered with the Financial Intelligence Unit of the finance ministry.
The platform has decided to convert SAFU assets into USDC, bolstering reliability and stability at $1bn.
In an astounding revelation, Binance announced its return to India as an entity registered with the Financial Intelligence Unit (FIU) of the financial ministry. The exchange plans to reform its South Asian entity and resume its services in India with a $2 million penalty.
Previously, the Indian government banned global virtual asset exchanges like Binance, KuCoin, and OKX, claiming that they do not comply with the country’s regulatory policies. In December 2023, these companies were sent show-case notices warning them against their violation of local tax rules and anti-money laundering laws.
The Economic Times reported on the matter, citing information fetched from sources with knowledge. One such source stated that the company would restart complying with all the applicable laws, including the Prevention of Money Laundering Act (PMLA) and the VDA taxation framework, “which it had been sloppily flouting until now.”
Another source commented on Binance’s lethargy in comprehending the regulatory policies of India. The source stated that it is unfortunate that the platform didn’t realize that “no global powerhouse can command special treatment, especially at the cost of exposing the country’s financial system to vulnerabilities.” Reportedly, India has been friendly to all crypto exchanges that comply with all regulatory laws.
In related news, Binance announced the conversion of 100% of the Secure Asset Fund for Users (SAFU) to USDC. The platform assured of a “trusted, audited, and transparent stablecoin” for SAFU, enhancing its reliability. Binance shared an X post, announcing, “Today, all SAFU assets will be converted to USDC, bolstering reliability and stability at $1bn.”
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