Binance converts US$1 bln fund; eyes India comeback after obtaining Dubai license

Binance, the world’s largest cryptocurrency exchange, announced Thursday the conversion of its US$1 billion Secure Asset Fund for Users (SAFU) to USDC stablecoin in a bid to bolster user confidence and meet regulatory standards.

The conversion of the SAFU represents around 3% of USDC’s total circulating supply.

“Today, we are transferring 100% of SAFU’s assets to USDC. Making use of a trusted, audited, and transparent stablecoin for SAFU further enhances its reliability and ensures it remains stable at $1B,” said Binance.

Meanwhile, The Economic Times reported Thursday on Binance’s ongoing negotiations for its Indian market comeback, which includes restructuring its operations to fully comply with the country’s regulations.

Binance’s planned return to India follows a period of negotiations to resolve a US$2 million penalty and align with the country’s Financial Intelligence Unit (FIU) regulations, including the Prevention of Money Laundering Act (PMLA) and the crypto taxation framework.

Before its temporary ban in India for non-compliance, Binance played a significant role in the country’s cryptocurrency landscape, with Indian investors holding an estimated US$3.6 billion in crypto assets through the platform, according to the Economic Times.

In Dubai, Binance has made considerable progress by obtaining a full Virtual Asset Service Provider (VASP) license, which permits the company to offer its services to a broader clientele, including retail investors.

Changpeng Zhao, Binance’s co-founder, has made notable governance concessions, such as relinquishing control in the Dubai-based entity, Binance FZE, to meet the regulatory requirements.