The recent enforcement action against Binance by the Indian authorities has resulted in the imposition of a fine amounting to approximately USD 361.45 million. Despite this, the specific method used to calculate this fine has not been confirmed.
According to a source familiar with the matter, the timing of the resolution has been criticized, with the observation that it took Binance over two years to acknowledge that negotiation was not feasible. It was also emphasized that no global powerhouse should be able to dictate terms that risk exposing a country’s financial system to potential vulnerabilities.
Following its registration with the Financial Intelligence Unit (FIU), Binance will be subject to the same regulations as local cryptocurrency exchanges. This includes the implementation of a 1% Tax Deduction at Source (TDS), a measure already in place for Indian crypto exchanges, such as KuCoin.
Binance’s customers were informed of these changes via email, with the regulatory burden being cited as the primary cause. Sumit Gupta, CEO of CoinDCX, highlighted the significance of regulatory compliance, stating that such developments are aimed at ensuring the adherence to regulations like the Prevention of Money Laundering Act (PMLA) and ultimately fostering a more compliant crypto ecosystem in India.