The question of Binance’s legal standing in India remains a subject of considerable discussion within the cryptocurrency community. Binance has been a go-to platform for Indian crypto traders for several years. Some investors continue using Binance without issues, while others worry about potential restrictions.
Given Binance’s massive popularity, clarity is more important now than ever. The exchange offers a vast selection of cryptocurrencies and advanced trading features, making it a favourite among Indian traders. However, its association with regulatory controversies has raised concerns about compliance and potential restrictions.
So, is Binance legal in India, or should traders be cautious? In this guide, we’ll break down the latest legal updates and help you understand where Binance stands in the country.
Is Binance Legal in India?
Yes, Binance is legal in India. Binance has resumed its operations, and you can use its platform to do so. It has registered with the Financial Intelligence Unit-India (FIU-IND) as a reporting entity, which allows it to operate legally. This registration signifies it is now following Indian financial regulations.
You can access Binance through its website and mobile applications. These platforms allow you to participate in cryptocurrency trading and related activities. Moreover, Binance provides peer-to-peer (P2P) trading features for Indian users. This function allows you to buy and sell cryptocurrencies with other users directly.
Richard Teng, CEO of Binance, emphasised that aligning with Indian regulations acknowledges the importance and potential of the Indian market for virtual digital assets. According to Teng, this compliance enables Binance to customise its services for Indian users while expanding its advanced platform to support the country’s growing digital asset ecosystem.
Binance CEO’s Point of View
Richard Teng, CEO of Binance, emphasised that aligning with Indian regulations acknowledges the importance and potential of the Indian market for virtual digital assets.
According to Teng, this compliance enables Binance to customise its services for Indian users while expanding its advanced platform to support the country’s growing digital asset ecosystem.
Read More: How to File Your Binance Taxes with KoinX
Binance’s in India: A Timeline (2023-2024)
Binance faced strict regulatory actions in India between 2023 and 2024. The Indian government banned the exchange, along with eight others, due to legal concerns. These restrictions affected many Indian users and changed how they could access Binance.
Why Did India Ban Binance?
On 12 January 2024, India banned Binance and eight other offshore crypto exchanges. The Ministry of Electronics and Information Technology (MeitY) took this action after receiving a notice from the Financial Intelligence Unit (FIU) on 28 December 2023. Authorities blocked these websites, and app stores removed their applications.
Key Reasons for the Ban
The Indian government cited serious concerns about these exchanges, including the following:
- Money laundering risks: Binance and others operated without proper oversight, making them a risk under India’s Prevention of Money Laundering Act (PMLA).
- Lack of KYC compliance: These exchanges did not follow India’s Know Your Customer (KYC) rules, which are necessary for financial transparency.
- Investor protection: Without regulatory approval, they posed risks to Indian investors.
Impact on Indian Users
After the ban, Indian users lost direct access to Binance. They could no longer deposit INR or use official apps. Many shifted to Peer-to-Peer (P2P) transactions as an alternative for buying and selling crypto.
Binance and FIU Compliance
Binance has taken significant steps to comply with India’s Financial Intelligence Unit (FIU) regulations. This compliance is crucial for the exchange to operate within the country’s legal framework and provide secure services to Indian users. Let’s understand it in more depth:
What Is FIU and Its Role?
The Financial Intelligence Unit (FIU) monitors financial transactions to prevent illegal activities such as money laundering and terrorist financing in India. It ensures that businesses, including crypto exchanges, follow strict regulations for transparency and security. By complying with FIU rules, you get a safer and more regulated trading environment.
Binance’s Compliance Measures
To align with FIU requirements, Binance has reinforced its compliance framework with strict Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) controls. Its Know Your Customer (KYC) process ensures robust identity verification, making trading more secure for you.
Additionally, Binance has established an industry-leading Financial Crimes Compliance (FCC) unit to support law enforcement in investigating crypto-related crimes. This initiative enhances security across the ecosystem and promotes regulatory collaboration.
Binance is committed to maintaining global compliance while adapting to India’s specific regulations. The exchange registered with FIU-IND as a reporting entity, allowing it to operate legally in India. This step ensures that Binance follows Indian laws while maintaining international best practices for crypto trading.
Impact on Binance’s Operations in India
After a seven-month ban, on the eve of 15 August 2024, Binance resumed its services in India by settling outstanding tax liabilities of $2.25 million and meeting compliance requirements. This re-entry means you can now access Binance’s services through the Google Play Store and Apple App Store in India. The move also strengthens Binance’s reputation as a responsible exchange.
Conclusion
Binance remains a prominent player in India’s crypto space, yet regulatory uncertainties call for cautious optimism. Currently, Binance is legal in India, and Indian crypto users can use it at their convenience. However, legal considerations require traders to stay informed and comply with evolving guidelines. By doing so, you ensure a secure and lawful trading experience.
For those seeking an easy way to navigate these complexities, consider reliable platforms like KoinX, which offer seamless crypto accounting and compliance management. Navigate crypto confidently by joining KoinX today for streamlined crypto portfolio tracking and compliance support.
Frequently Asked Questions
Can We Deposit INR On Binance?
No, you can not directly deposit INR on Binance, as direct INR deposits and withdrawals are currently blocked due to regulatory restrictions in India. However, users often work around this by using third-party platforms like WazirX to convert INR into stablecoins, which are then transferred to Binance
Can The Government Track Binance?
Yes. The Indian government can track Binance-related transactions via upgraded digital asset reporting systems like AIS, and Binance also collaborates with authorities to trace illicit flows and scams.
Does Binance Require KYC?
Yes. In 2025, completing KYC (identity verification) is mandatory for full access to Binance’s trading features. Some limited view-only or P2P access might exist without verification, but most users must undergo KYC to unlock full functionality.
How Do I Delete My Binance Account?
To delete your Binance account, navigate to your Profile >> Security >> Manage Account, then select Delete Account. Ensure you’ve withdrawn all assets and closed open orders first. Deletion is irreversible, Binance may still retain some personal data due to legal obligations like AML and disputes
