India's changing stance on cryptocurrency regulation is drawing international focus. In 2024, significant advancements in crypto adoption and institutional involvement were observed, with Bitcoin reaching a record high of $108,000 recently.

A key development this year was the approval of spot Bitcoin and Ether exchange-traded funds (ETFs) in the United States. Vishal Sacheendran, Head of Regional Markets at Binance, stated that India is set to lead global cryptocurrency regulation by 2025. According to him, such leadership could enhance trust and drive industry growth.

Binance Adapts to India’s Regulations

Binance has been adapting to India’s regulatory changes, aiming to expand its presence and ensure compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term. Sacheendran emphasized the importance of building a decentralized digital ecosystem, signalling a broader focus beyond crypto trading.

India’s regulatory journey began in 2019 with a draft bill proposing a complete ban on cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. However, this proposal was never introduced in Parliament. Over time, India’s stance shifted, reflecting global trends.

RBI Recommends Crypto Regulations in India

In a recent parliamentary session, Finance Minister Nirmala Sitharaman stated that the Reserve Bank of India (RBI) had recommended creating regulations for cryptocurrencies. She added that any ban would require international cooperation.

The Indian government has implemented tax measures on virtual assets. A 30% tax on crypto profits took effect on April 1, followed by a 1% tax deducted at source (TDS) starting July 1. These policies have reportedly reduced trading activity on Indian cryptocurrency exchanges.

Binance Fined for "AML Violations" in India

Earlier, India's Financial Intelligence Unit (FIU) fined Binance for violating the country's anti-money laundering regulations. It remains unclear when Binance will resume operations in India, as reported by Finance Magnates.

BREAKING: #Binance Fined $2.2 Million by FIU India🇮🇳 pic.twitter.com/BePVJD31p6

— Crypto India (@CryptooIndia) June 20, 2024

Binance was one of nine foreign cryptocurrency exchanges blocked by the FIU in December. The block also required Apple and Google to remove these exchanges from their app stores.

Under current regulations, cryptocurrency exchanges must register with the FIU as reporting entities and comply with local anti-money laundering rules. They are also required to withhold taxes on crypto transactions and profits.

Among the blocked exchanges, Seychelles-based KuCoin was the first to comply with Indian regulations, paying a penalty of 3.45 million rupees within a month. Binance registered with the FIU in May, which allowed it to restart its operations in the country.