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Binance Hit with $2.25 Million Fine by India for AML Violations

 |  June 20, 2024

India’s Financial Intelligence Unit (FIU) has imposed a fine of 188.2 million rupees ($2.25 million) on Binance, the world’s largest cryptocurrency exchange, for operating in the country in violation of local anti-money laundering (AML) regulations.

India mandates that virtual digital asset service providers, including cryptocurrency exchanges, must register with the FIU as reporting entities and adhere to stringent AML protocols. According to a Reuters report, Binance had registered with the FIU in May, aiming to resume operations in India after the regulatory body issued show-cause notices to nine offshore exchanges found to be flouting local rules.

The FIU’s enforcement actions included requests to the Ministry of Electronics and Information Technology to block online access to the non-compliant exchanges. While Binance’s AML fine is substantial, the regulatory scrutiny extends beyond India. The exchange faced a $4.38 million penalty from Canada’s anti-money laundering agency in May for similar violations.

Read more: US Sues World’s Largest Crypto Exchange Binance

Binance is not the only exchange to face penalties in India. KuCoin, another cryptocurrency exchange, registered with the FIU in March but was levied a smaller penalty of 3.45 million rupees.

The regulatory crackdown on Binance also advanced significantly in the United States. In May, Changpeng Zhao, the former chief executive of Binance, was sentenced to four months in prison by U.S. District Judge Richard Jones in Seattle after pleading guilty to violating the country’s anti-money laundering laws.

Source: Reuters