Binance is the world’s largest cryptocurrency exchange, and for most, they are the poster boy of crypto exchanges. Binance flaunts about $70 billion-plus average daily trading volume, with over 350 cryptocurrencies listed.
But many people question and are confused about Binance’s legality in India. Some people believe that Binance is perfectly legal, while many others think it is banned. There is a section of investors who stay away from Binance as well, anticipating a ban.
But what actually is the truth here? Is Binance available in India? And if Binance is not banned, what could be the reason behind the rumors? Let us explore.
The legality of Binance in India
The legality of cryptocurrency exchanges, in general, is a gray area in India. As of now, India doesn’t have solid guidelines regulating these exchanges. This means nothing is making them illegal.
The news related to Binance’s ban in India is mostly rumors. As of now, there is no ban on Binance alone in India. But where did these rumors come from? Let us investigate.
Binance – the foreign exchange
The rumors started around the time when India started its efforts to regulate cryptocurrencies in India. Around this time, several news outlets reported, without citing sources, that the government plans to ban foreign exchanges and wallets. One important thing to understand here is that the lion’s share of exchanges and wallets available in India are of foreign origin.
This news caused panic, and people started worrying about their investments in foreign exchanges.
But at the same, the reports or the news that came out were not from an official source. Many famous people in the crypto space in India, including the CEOs of some cryptocurrency exchanges, tried to clarify this, saying this is just a rumor.
But at the same time, on the off chance that something similar is to happen,
Experts believe Investors will be given enough time to make changes, and nothing will be rushed, especially since people’s money is at stake.
The problem with banning foreign exchanges
One problem that the cryptocurrency community in India would face in the rare chance that such a ban is implemented is the lack of versatility. There are multiple ways for an investor to make money rather than buying low and selling high.
But the options available through most Indian exchanges are limited to this strategy alone. Plus, the diversification in terms of choices is limited when compared to an international exchange like Binance.
A logistical problem with banning foreign exchange is the implementation. Since cryptocurrencies are largely unregulated and decentralized, it is unlikely that the government will be able to implement the ban effectively.
Can I use Binance in India?
You can safely use Binance in India, as there are no legal barriers as of now. In fact, India has seen a surge of users to Binance ever since the government started imposing the new crypto taxation rules. This is at a time when Indian cryptocurrencies’ trading volumes went down up to 90%.
If you are planning to start using Binance in India, below are steps you can follow.
Step 1 – Registration
You first need to create an account on Binance by providing the platform with your email address and phone number. Binance has a two-factor authentication system and will send an OTP to your mobile device whenever a new login attempt is made.
Step 2 – KYC
Following the registration on Binance, you will be required to verify your account by navigating to your email inbox associated with your account and entering the code when requested.
The next stage is to finish your Know Your Customer(KYC) paperwork. You must input your personal information, including your full name, date of birth, and address. The following stage requires you to submit a picture of your identification card, which may be anything from a driver’s license to an AADHAR card, a PAN card, or even a voter ID card.
Step 3 – Adding funds to the wallet.
Now that you’ve successfully registered your Binance account, it is time to fund your wallet. You may fund your wallet with either current cryptocurrencies or fiat cash. Other means of transferring payments and purchasing cryptocurrencies include direct bank transfers or P2P transfers from your bank.
Step 4 – Buying cryptocurrency.
Once the money reaches your wallet, you may then proceed to buy the cryptocurrency of your choice. Here, you’ll find both P2P alternatives from various merchants and express methods, where you may just input the amount you want to purchase and have it instantly converted to Bitcoin (BTC).
Indian alternatives to Binance
If you are still doubtful about choosing Binance, below is a list of Indian cryptocurrency exchanges you can try.
WazirX is a cryptocurrency exchange that was established in 2018 and claims to be India’s biggest. It is a subsidiary of the Binance group, which operates the most prominent cryptocurrency trading platform on the planet. WazirX is continuously expanding in India, as seen by its current monthly volume of $5.4 billion and its 6 million user registrations.
CoinDCX became live in 2018 and has more than 10 million registered users. Because of its user-friendly design and stringent security standards, they have quickly become one of the most popular cryptocurrency exchanges that Indian crypto investors may use. In addition to that, they provide trading in spot, margin, and futures markets, as opportunities to make money via lending and staking.
ZebPay was first introduced in 2014 and was reintroduced in India in 2020. They have more than 5 million users and have clocked in more than 10 billion fiat currency transactions. They have a wide variety of products available, making them one of India’s most competitive cryptocurrency exchange alternatives. These products include the ZebPay exchange, over-the-counter trading, and financing.
In summary, there are no legal barriers to using Binance in India. But if you are conservative about the same, many alternatives are also available.
In the meantime, you can stay up to date with your crypto taxes with KoinX.