FIU India penalized Binance $2.25 Million for AML rule violations

Last year in December Financial Intelligence Unit in India had blocked url for nine international exchanges. This action was taken by the government authority after issuing the notice to these exchanges to get registered in India and get complied as per the guidelines. No exchange turned up after the notice and finally, the FIU had to block the url for these exchanges. Binance was also one of the exchanges in the list that got blocked in India. Out of these 9 crypto exchanges, Kucoin is the first one that got registered in India after paying the penalty.

image.png

Now Binance is the second exchange in the list that is following the process to get registered in India. India is a bigger cryptocurrency market and this is why these leading exchanges are not ignoring the potential in this market and possibly because of that, they are trying to get registered in the Indian market so that they can serve the users in the Indian cryptocurrency space.

As part of the registration process, the exchange has to pay the penalty and now FIU has penalized Binance for $2.25 million and this is for the violation of anti-money laundering rules. This penalty amounts to Rs 18.82 crore in INR currency and this is a big amount but considering what volume Binance has raised this seems ok. Now once this penalty amount is paid then Binance will be able to serve Indian users as per the FIU guidelines. They should also be announcing it soon hopefully and they will be making some changes in the system as well. In India, every sell transaction attracts 1% TDS which is a mechanism to track the transaction and this amount needs to be deducted by the exchange. The Kucoin exchnage has already implemented it and Binance should be doing the same as well.

Binance is a leading international crypto exchnage and people prefer to use this as they get more coins and a bigger volume on their platform. Now once this process is complete then Indian users will be able to use the exchnage. Currently, mobile applications in working in India but the web URL is still blocked and not accessible. VPN can be the solution to access the website but this is not recommended by the exchnage itself as their system tracks it as suspicious usage and blocks the account.

Undoubtedly this is a bigger exchange and because of that it has a massive user base and once it is registered in the Indian market then it would be easy for the Indian users to use their chain without worrying about compliance. But there is a crash that whoever has not been following the tax law in the country must be following the same now since every transaction will be tracked and users will be required to pay the applicable taxes accordingly. After this registration process, it will also be competitive for the Indian exchanges because now they will have to provide the best of their services to compete in the market with such a big player. If they will not be providing the best of services to today's users then it will surely affect their business since it will be kind of mandatory for them to compete in the market if they are serious about the business and want to have a better stake in the market.

image.png

I think that this is good news for the Indian news because they will be getting the option to use this exchange which is great for many reasons. This will also create a competitive environment for the local exchanges in the country which means better services will be provided to the users. Some Indian exchanges are not doing good and they have to improve themselves after this else they will lose the user base because nobody wants to use the exchange which is not able to serve according to the market standard. I'm looking forward to seeing how this turns up in the Indian market and if still, this exchange will still get the user base they have before and after the tax rules implementation.

Thank you

Posted Using InLeo Alpha



0
0
0.000
20 comments
avatar

This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.

100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited.

0
0
0.000
avatar

This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating to @indiaunited. We share more than 100 % of the curation rewards with the delegators in the form of IUC tokens. HP delegators and IUC token holders also get upto 20% additional vote weight.

Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.

image.png

100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited..

This post received an extra 20.00% vote for delegating HP / holding IUC tokens.

0
0
0.000
avatar

dang binance will pay lol thats pocket change for them

0
0
0.000
avatar

Now Binance is the second exchange in the list that is following the process to get registered in India

That is a very good news.

0
0
0.000
avatar

That's great news for Indians unlike here in Nigeria where the government are not being considerate with giving crypto exchanges a chance to work together.

0
0
0.000
avatar

It's sad that Nigeria govt is not paying attention to this however this should not be the case. Hope they consider

0
0
0.000
avatar

Binance finally getting registered in India 💯🏆🏆🏆. I think the competition might push local exchanges to step up their game. I'm getting very curious how the Indian crypto market will evolve with these changes. This is proof that crypto will most certainly dominate the future

0
0
0.000
avatar

although the tax rules for crypto in India seems discouraging, one needs to admit they'll have to comply. India has the needed population to thrive crypto and blockchain at large.

0
0
0.000
avatar

Indian cryptocurrency community is big and hope the govt does something to grow it even more by bringing better tax rules

0
0
0.000
avatar

I hope so too, it could help revamp their economy.

0
0
0.000
avatar

Hello alokkumar121!

It's nice to let you know that your article will take 6th place.
Your post is among 15 Best articles voted 7 days ago by the @hive-lu | King Lucoin Curator by keithtaylor

You receive 🎖 1.2 unique LUBEST tokens as a reward. You can support Lu world and your curator, then he and you will receive 10x more of the winning token. There is a buyout offer waiting for him on the stock exchange. All you need to do is reblog Daily Report 341 with your winnings.

2.png


Invest in the Lu token (Lucoin) and get paid. With 50 Lu in your wallet, you also become the curator of the @hive-lu which follows your upvote.
Buy Lu on the Hive-Engine exchange | World of Lu created by szejq

If you no longer want to receive notifications, reply to this comment with the word STOP or to resume write a word START

0
0
0.000