Binance, the world's largest cryptocurrency exchange by trading volume, said Thursday it has resumed operations for users in India after a seven-month hiatus imposed by a local authority that accused it of operating "illegally" in the country.

The exchange said Thursday it has registered as a reporting entity with India's Financial Intelligence Unit, a government agency tasked with scrutinizing financial transactions.

Late last year, India blocked nearly a dozen foreign crypto exchange services, including Binance, Kraken, KuCoin and Mexc, at the recommendation of the FIU. According to the FIU, said exchanges need to register locally to comply with the country's anti-money laundering and counter financing of terrorism framework.

FIU's move follows after the Indian Ministry of Finance complaints registered by local crypto exchanges losing business to noncompliant foreign crypto exchanges.

Binance' website and mobile apps, meanwhile have become operational again in India. Binance said in a statement that compliance with the Indian authority marks the 19th regulatory milestone for the firm.

"Our registration with the FIU-IND marks an important step forward on the development journey of Binance," said Binance CEO Richard Teng in a statement .

"With increased awareness of the dynamism and growth potential of the Indian VDA market, the alignment of it with Indian regulations will help tailor our services to meet the needs of Indian users. It is an honor to extend the reach of our state-of-the-art platform to this vibrant market, further promoting VDA development by India.".

India, despite being one of the most crucial overseas nations for any global tech behemoth, remains relatively underdeveloped when it comes to its cryptocurrency market. The Reserve Bank of India has been exerting maximum pressure on banks to separate from firms dealing in cryptocurrencies since the past five years. Additionally, the present government has significantly reduced local interest in the digital assets with highly stringent tax policies.

Coinbase ceased signing up new customers from India during the year after what it described as informal pressure from India's central bank.

Regulatory and fiscal barriers have effectively allowed the growth of India's crypto ecosystem to stall. Perhaps worse was when a hack occurred on a local exchange and estranged Binance partner WazirX, where almost half its reserves were lost.