Binance absorbed a $88 million regulatory cost to reclaim 90% of India's crypto holdings

Indian users regained access to the Binance website and app in August 2024 after the exchange paid a Rs 188.2 crore penalty and registered as a reporting entity with the FIU-IND. This restored Binance's access to a market where Indian nationals hold an estimated $4 billion in crypto, a segment the exchange previously controlled nearly 90% of. The restoration followed a period of blackout. In January 2024, the FIU directed the Ministry of Electronics and Information Technology to block Binance's URLs and mobile applications. This action was the result of December 2023 show-cause notices issued by the FIU-IND to Binance and eight other offshore exchanges for operating without compliance under the Prevention of Money Laundering Act. In June 2024, the FIU imposed a Rs 188.2 crore penalty on Binance for failing to maintain transaction records and not furnishing required information to authorities. Separately, the DGGI issued an $86 million tax demand on the exchange.