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BREAKING: 𝕏 is the #1 news app in 140 countries.



BINANCE TO RETURN TO INDIA AFTER PAYING $2M PENALTY: WHAT WE KNOW - After being banned by the government in January, Binance, the world's largest cryptocurrency exchange, is set to make a comeback in India by paying a hefty penalty of approximately $2 million, as reported by Economic Times. - However, there is no confirmation behind the penalty amount of $2 million or the calculations behind it. Key Points: FIU Registration: - The crypto exchange will operate as an entity registered with the Financial Intelligence Unit (FIU) of the finance ministry. - FIU oversees trade in virtual digital assets (VDA) and ensures compliance with laws such as the Prevention of Money Laundering Act (PMLA) and the VDA taxation framework. Compliance Commitment: - Binance pledges to abide by all applicable laws, including those related to money laundering and taxation. - Previously criticized for flouting regulations, the exchange aims to rectify its past behavior and operate within legal boundaries. Government's Stance: - Indian authorities have maintained a clear stance—global cryptocurrency exchanges must comply with all laws to operate in India. - Binance's return signals a shift towards stricter enforcement and regulation within the Indian crypto market. - Binance's re-entry is seen as a positive development for the crypto industry in India. It is expected to bring maturity to the market and attract global investments. - However, all exchanges are now subject to the same regulations, ensuring a level playing field. Indian Exchanges’ Growth and Tax Leakage: - Indian exchanges, including CoinDCX and WazirX, witnessed substantial growth post-Binance ban, signaling a shift in investor behavior. - Worth noting, global crypto exchanges that lack registered entities in India leak nearly $360 million of tax every year to the treasury, according to research by think tank Esya Centre. Image: Linkedin #India #Binance





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