Binance, the world's largest cryptocurrency exchange, is reportedly attracting traders in India by allowing them to buy and sell cryptocurrencies in Indian rupees. The exchange acts as a neutral third party, providing an 'escrow service' that pairs a local buyer and seller in an offshore marketplace while settling the payment in INR. Indian regulators are aware of these transactions, and Binance is not violating any laws as they only provide escrow services for crypto transfers, which are not recognized as legal tender. However, local traders who advertise for buying and selling cryptos on the Binance platform could potentially be violating exchange control rules and anti-money laundering. Indians have moved their cryptos to wallets with foreign exchanges, decreasing user activity on India-based exchanges to 90% in 2022.
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