India’s Financial Intelligence Unit Fines Binance $2.2M
According to the report on CoinDesk Binance, the world’s largest cryptocurrency exchange, has been fined approximately $2.2 million (18.82 crore INR) for providing services to Indian clients without adhering to the nation’s anti-money laundering (AML) regulations, India’s Financial Intelligence Unit (FIU) announced on Thursday.
In January 2024, Binance and several other offshore cryptocurrency exchanges were issued showcause notices by Indian authorities and subsequently removed from the Indian market for “operating illegally.” However, the exchange, along with KuCoin, became the first offshore crypto-related entities to be approved by India’s FIU in May, contingent upon paying a penalty after a hearing with the FIU.
“After considering the written and oral submissions from Binance, the Director of FIU-IND found that the charges against Binance were substantiated,” stated the FIU announcement. “We urge all industry participants to strictly adhere to AML and combating the financing of terrorism (CFT) laws,” said Dilip Chenoy, Chairman of the Bharat Web3 Association. Consequently, the FIU Director ordered the imposition of a “total penalty” of approximately $2.2 million on Binance, along with “specific directions to ensure diligent compliance with the obligations.”
In response, the exchange stated, “We are aware of the FIU’s order and are reviewing it to determine our next steps. We are grateful for the opportunity to continue our mission to serve the vibrant Indian crypto community. We wish to work with the FIU as a reporting entity and are enthusiastic about reentering the Indian market to contribute positively, should we be able to do so in the near future. We remain dedicated to maintaining transparency, fostering cooperation, and ensuring compliance with regulatory authorities.”
