Indian Government Set Rules for Binance to Operate in India (2024)

Binance Exchange Must Adhere to PMLA Guidelines

The Indian government has rejected Binance's request for reinstating temporary operations in India. In a stern response to Binance's plea, the government emphasised compliance with the country's laws, including PMLA (Prevention of Money Laundering Act), and urged the platform to implement necessary procedures. While Binance has settled outstanding taxes and penalties, it has not yet agreed to follow the guidelines outlined in the PMLA.

No Special Treatment for Binance

The Indian government is unwilling to grant any exemptions to cryptocurrency exchange Binance. Despite Binance expressing the need for time to set up processes for adhering to PMLA and Financial Intelligence Unit (FIU) rules, the government asserted that no firm could be granted such concessions. Binance must fully comply with all regulations before further discussions on this matter.

Coin Gabbar suggests that the government's top priority is ensuring user safety. It is unlikely to take any steps that could potentially harm Indian investors. Binance needs to fulfil all regulatory requirements before any further considerations are made by the Indian government.

Ban on 9 Exchanges, Including Binance

Earlier, the Indian government had completely banned nine cryptocurrency exchanges, including Binance, for failure to register with the FIU at the beginning of the year. In recent actions, the government not only removed apps of foreign crypto exchanges from Google Play Store and Apple App Store for Indian users but also blocked access to the platforms' URLs. Notably, the exchanges facing government actions include Binance, Bittrex, Kucoin, Huobi, MEXC Global, Kraken, Bitstamp, Gate.io, and Bitfinex.