The cryptocurrency exchange Binance is prepared to return to India after a period of restriction from the Indian market, in exchange for paying a $2 million fine. Other than this, though, Binance has done something that might help its relationship with the Indian government.
E-Nuggets was an online scam software that the Enforcement Directorate (ED) in India recently took down, taking about $10 million. What makes this specific scam remarkable is that Binance, ZebPay, and WazirX collaborated with ED to assist discover it.
Reports state that E-Nuggets had almost $10 million spread across 70 distinct cryptocurrency wallets connected to these three exchanges. All three exchanges complied when the ED asked them to block these wallet addresses and move the cryptocurrency holdings to the agency's wallet. Binance appears to be attempting to show the Indian government that it is committed to abiding by all laws and that it will assist in putting an end to any illicit activity by helping to expose a scam app. This aligns with Binance's strategy to fulfill all requirements set forth by India prior to completely reentering the market.
Binance is eager to win back the trust of the Indian government.
Binance wants to win over the Indian government once more. After nearly four months of being prohibited in India once more, Binance is ready to make a comeback. The Binance Exchange recently settled a $2 million fine for this reason. In order to be eligible for its return, Binance must abide by all rules established by the Indian government, including paying fines, registering with the Financial Intelligence Unit (FIU), and abiding by all Indian laws, including the VDA Taxation Framework and the Prevention of Money Laundering Act (PMLA).
Part of Binance's plan involves accomplishing this while supporting the Enforcement Directorate (ED) in combating a scam app. By doing this, Binance is letting the Indian authorities know that it will not only follow all legal requirements in India but also be happy to work with them to stop any illicit activity.
According to Coin Gabbar, Binance understands that to capture big markets like India, it must comply with all the conditions set by the Indian government. If it falls behind in doing so, it might face expulsion from the country. However, considering the current situation, being excluded from significant markets like India could be detrimental for any crypto exchange, especially for Binance, which is the world's largest crypto exchange.
Therefore, Binance is not only willing to stand by all rules and regulations in India but also planning to introduce payment solutions, establish a dedicated Indian team, and invest in India's blockchain system. It can be hoped that Binance will soon be included in the good books of the Indian government and may receive some concessions from the Indian government in the future. This step will help Binance run its operations smoothly in significant countries like India.
May 2024, Cryptoniteuae