In a bid to resume operations in India, Binance, the global leader in cryptocurrency exchange, is reportedly gearing up to pay a $2 million penalty, according to sources familiar with the matter cited by India’s Economic Times. This move comes in the wake of the exchange's commitment to comply with local regulations and rectify past non-compliance issues.

Reports suggest that Binance is diligently restructuring its South Asian entity to ensure full registration with India’s Financial Intelligence Unit (FIU), which supervises the local digital asset trade. The exchange is actively working towards meeting all regulatory requirements, including those concerning anti-money laundering measures and taxation laws.

Earlier in January, the Indian government cracked down on nine cryptocurrency websites for operating illegally without adhering to local regulations. This crackdown prompted Apple and Google stores to remove crypto exchange apps from their platforms in the region.

Binance South Asia’s X account emphasized their commitment to regulatory compliance in January, stating, “We remain committed to complying with local regulations and maintaining dialogue with regulators worldwide to ensure the continued availability of our services.”

Before the ban, Binance reportedly held sway over approximately 90% of Indian investors' crypto holdings, estimated at $4 billion, as per the Economic Times. Its dominant position was allegedly due to non-compliance with local tax laws, allowing users to trade crypto without the requisite 1% tax deducted at source.

The details of Binance's planned return to India are yet to be confirmed by either Binance or the FIU. Requests for clarification from The Block to both parties remain unanswered at this time.