Crypto exchange Binance is poised to re-enter the Indian market following a period of regulatory challenges.

Summary: Binance is gearing up to resume operations in India by paying a $2 million penalty, as reported by The Economic Times.

Benzinga has contacted Binance for a statement.

Previously accused of disregarding compliance regulations such as the Prevention of Money Laundering Act (PMLA) and taxation norms for Virtual Digital Assets (VDA), Binance is now committed to strict adherence to these standards.

According to sources familiar with the regulatory discussions, Binance had been nonchalantly violating these regulations prior to the ban.

Indian financial regulators have emphasized that international cryptocurrency platforms must fully comply with national laws to function within the country.

Despite the strong stance taken by regulators, details regarding the $2 million penalty and its calculation remain unconfirmed by official sources.

Before the ban, Binance held a dominant position in the Indian market, controlling about 90% of the country’s estimated $4 billion in crypto assets.

The platform’s market dominance was partly due to its avoidance of the mandatory 1% Tax Deducted at Source (TDS) applicable to registered exchanges in India.

While this non-compliance made trading more convenient, it also resulted in significant tax revenue losses for the government.

Binance’s return to India signifies not only a corporate decision but also a strategic one aligning with global trends where countries like the US, the UK, and Hong Kong are integrating crypto-based assets into traditional financial markets.

Binance aims to establish a strong local presence in India, including a dedicated team and localized payment options, to actively contribute to the Indian blockchain ecosystem.

Upcoming Event: These developments are expected to be discussed in detail at Benzinga’s Future of Digital Assets event on Nov. 19.

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