Binance in Talks with Center to Resume Operations But Not Ready to Comply with PMLA Rules Yet Binance is also being nudged to comply with FIUs in the UK, Thailand, Singapore and other countries lately
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Cryptocurrency exchange Binance is reportedly in talks with the Indian government to restore access to its mobile app and website.
While the platform has agreed to pay the taxes and the penalties levied liable for as of January 12, it is not yet ready to comply with the country's PMLA (Prevention of Money Laundering Act) guidelines. The government has therefore rejected its plea to be allowed to resume operations in the interim while they put in processes to comply with the country's legislation.
"Compliance with PMLA is paramount. They have been explicitly told that any discussion on resumption of their services in India is only after the government is satisfied with their responses on the notices sent by the FIU (financial intelligence unit)," a senior official said.
The government has categorically informed the cryptocurrency exchange platform that no exceptions shall be made and thus, Binance must show complete compliance with the regulations.
"We remain committed to the adherence of local regulations and laws and we are dedicated to maintaining active communication with regulators to ensure user protection and the development of a healthy Web3 industry. Updates with relevant information will be promptly shared through our official channels," said a Binance spokesperson.
Additionally, the government is also working with banks to formulate action against traders who are using VPN (virtual private network) to access Binance's website to evade the ban and continue crypto trades illegally.
About 4000 traders are using VPN to trade on Binance instead of shifting their assets to compliant Indian exchanges. It is estimated that nearly USD4B cryptocurrency of Indian traders is parked in offshore wallets, predominantly Binance.
The government, in addition to Binance, have also banned Kucoin, Huobi, OKX, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex from operating in the country. Binance is also being nudged to comply with FIUs in the UK, Thailand, Singapore and other countries lately.