According to reports, Binance, the globally prominent cryptocurrency trading platform, is aiming to resume operations in India following a ban imposed by the local authorities earlier in 2021.
Binance’s Cost To Return To India
Based on information from India’s Economic Times publication, the exchange is planning to re-emerge as a legally recognized entity in order to adhere to the nation’s anti-money laundering rules and tax requirements.
To “reform” its South Asian branch, this strategy requires the company to pay a significant $2 million penalty.
Significantly, the Indian government’s move against 9 cryptocurrency sites, which included Binance, in January, came as a response to their suspected involvement in illegal activities that went against local laws. Consequently, these crypto exchange apps were taken down from the Apple Store and Google Play in the concerned area.
In spite of the obstacles, Binance South Asia’s X account stated in January that they are dedicated to following regulations and are making efforts to get fully registered with India’s Financial Intelligence Unit, the regulatory body responsible for monitoring digital asset transactions.
In simple terms, there have been recent updates to the rules for crypto exchange apps, including Binance, on the Apple Store for download in India.
At Binance, we’re facing a common predicament that isn’t exclusive to us. We’re dedicated to following local laws and continuing open lines of communication with regulatory bodies.
— Binance South Asia (@BinanceDesi) January 10, 2024
The revelation additionally states that the company intends to comply with all relevant rules, such as those against money laundering and tax evasion, in order to facilitate an uncomplicated return to business in India.
Global Expansion And Asset Management Evolution
The exchange is planning to return to India as part of its overall business strategies and international growth initiatives. Notably, it has obtained a complete cryptocurrency license in Dubai, signifying its debut in the Middle East.
After Changpeng Zhao, co-founder, gave up voting rights in the local entity, this move enabled regulatory approval for Binance’s growth into Dubai. The report indicates that Binance’s entry into Dubai is consistent with their strategic plan to have a significant presence in major international markets and broaden their geographical reach.
Binance is thrilled to announce that we have been granted a Virtual Asset Service Provider (VASP) license by Dubai’s Virtual Assets Regulatory Authority (VARA). This recognition signifies our commitment to adhering to the highest regulatory standards in the virtual asset industry.
Reaching this achievement opens up the opportunity for us to offer our services to both retail consumers and qualified institutional investors.
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— Binance (@binance) April 18, 2024
The exchange has made some major shifts in how it manages its assets, most notably converting all of its Secure Asset Fund for Users (SAFU) into US Dollar Coin (USDC), a digital currency that maintains a steady value relative to the US dollar.
According to the news, the SAFU fund, created in 2018 to protect user funds during crises, has shifted to using USDC to “improve clarity, trustworthiness, and resilience.”
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2024-04-18 23:42