Indian Government Set Rules for Binance to Operate in India (2024)

FAQs

Can Binance be used in India? ›

Binance will be the second offshore exchange to register in India after Seychelles-based Kucoin announced FIU compliance last month, following which the ban on its website was lifted.

The Indian government has rejected Binance's request for reinstating temporary operations in India. In a stern response to Binance's plea, the government emphasised compliance with the country's laws, including PMLA (Prevention of Money Laundering Act), and urged the platform to implement necessary procedures.

The Reserve Bank of India (RBI) classifies cryptocurrencies as "virtual digital assets" (VDAs). This indicates recognition for tax purposes, but they are not considered legal tender.

The notice was issued because these companies failed to comply with registration and local tax rules. As a result, the Finance Ministry directed the Ministry of Information Technology to block their URLs.

Yes, you can use a VPN to gain access to Binance.com in the US. A VPN hides your real IP address and location behind an IP address belonging to your provider in the country you connect to.

The Indian government has placed restrictions on cryptocurrency trading, making it difficult for exchanges like Binance to operate in the country. If you are trying to register for Binance using an Indian mobile number, you may receive an error message indicating that your number is not valid.

Tax Rate on Crypto Gains: Cryptocurrency gains in India are taxed at a flat rate of 30% plus a 4% cess. This tax applies to various crypto transactions including trading, mining, and exchanging cryptocurrencies for goods and services.

It is important for Binance to perform KYC to comply with anti-money laundering (AML) and anti-terrorism financing (ATF) regulations. Completing KYC on Binance allows you to access higher daily withdrawal limits and other benefits, such as participating in exclusive events and promotions.

How much are Binance fees? Binance has 0.1% trade fees. If you own Binance currency, you can enjoy a 25% reduction on your charge.

Firstly, you need to sign up on Binance.com by using your phone number or email address, entering a strong password, and moving on to verify them. Then, you will have to activate the 2-step authorization, which will increase the security of the account.

How much crypto is tax free in India? ›

Section 194S levies 1% Tax Deducted at Source (TDS) on the transfer of crypto assets from July 01, 2022, if the transactions exceed ₹50,000 (or even ₹10,000 in some cases) in the same financial year. The crypto tax applies to all investors, whether private or commercial, who transfer digital assets during the year.

Is Cryptocurrency In India Legal or Not? Cryptocurrencies as a payment medium in India are not regulated by any central authority. There are no rules and regulations or any guidelines laid down for settling disputes while dealing with cryptocurrency. So, trading in cryptocurrency is done at investors' risk.

In conclusion, the best crypto exchanges in India include Mudrex, CoinDCX, CoinSwitch, WazirX, ZebPay, and BitBNS based on several factors like ease of use, security, fees, coin availability, and more.

Investors can purchase Bitcoin on cryptocurrency exchange platforms, ensuring it is registered with the Financial Intelligence Unit India. Select an exchange with a user-friendly interface and extensive support for BTC trading pairs. Added to this, look out for considerate trading fees.