Binance, the world's largest cryptocurrency exchange by trading volume, is actively trying to "find the ideal time to launch its local presence in India," a Binance spokesperson told CoinDesk in an email.
"We are monitoring changes in the local regulatory environment ... We are also in discussions with various stakeholders to understand the market approach of the South Asian market in a compliant manner," the spokesperson added.
CoinDesk had raised the India question with Binance after multiple sources indicated the company's interest in hiring in the region.
A review of LinkedIn shows that Binance is actively looking in India and South Asia: Head of Government Relations APAC, Regulatory Counsel APAC, Head of Acquisition, Executive Communications and Visibility Lead, Communications and PR Lead, PR Director APAC, Global Comms/PR Manager, and a Content Marketing Specialist.
Binance coming to India - a country of 1.4 billion people where more than 50% of the population is under the age of 30 - despite regulatory constraints such as the new tax law and suppression of payment solutions, could be an important event for the crypto ecosystem.
"Certainly user awareness and crypto adoption could get a boost, but it could also backfire because Binance would have to disclose the KYCs of Indian retailers who may have used an Indian exchange to trade money on [the exchange]," said Siddharth Sogani, founder and CEO of crypto research firm Crebaco.
The development comes after Coinbase, the world's third-largest cryptocurrency exchange by trading volume, began operations in India on April 7, only to pull out three days later due to regulatory difficulties that disrupted nearly the entire industry.
FTX, the world's second-largest cryptocurrency exchange by trading volume, has been exploring the feasibility of launching in India, but regulatory concerns have put things on hold for now, according to at least two sources familiar with the matter.
Asked about his India vision in the near future, particularly after the struggles for Coinbase and FTX, the Binance spokesperson said India can be a major crypto participant. "More than 10 crore (100 million) Indians own cryptocurrencies, according to industry reports, and we can say that mass adoption of crypto is happening in India," he said. With strong industry players on the ground investing in the country's industry, India can become one of the hubs of the crypto industry," the spokesperson said.
According to policy specialists in India, neither Binance nor FTX will come to India until the regulatory environment improves, especially after Coinbase's troubled launch.
Vivan Sharan, a technology and policy expert who has worked with the government in the past, said global crypto exchanges could be great for India.
"India [should] not look at investments from global crypto exchanges as a disruptive force," Sharan said. "Rather, it should view them as an economic opportunity that can be leveraged through regulation. Exchanges are important nodes in Web 3.0 and can easily be nudged to mitigate the types of risks for which the crypto ecosystem is currently criticized."