In a significant regulatory development, Binance, the world's leading cryptocurrency exchange, has been fined approximately $2.2 million (18.82 crore INR) by India's Financial Intelligence Unit (FIU) for non-compliance with the nation's anti-money laundering (AML) regulations
In a significant regulatory development, Binance, the world’s leading cryptocurrency exchange, has been fined approximately $2.2 million (18.82 crore INR) by India’s Financial Intelligence Unit (FIU) for non-compliance with the nation’s anti-money laundering (AML) regulations. This penalty highlights the increasing scrutiny of cryptocurrency operations in India.
In January 2024, Binance and several other offshore cryptocurrency exchanges received showcause notices from Indian authorities, resulting in their expulsion from the Indian market for “operating illegally.” Despite this setback, Binance, along with KuCoin, achieved a milestone in May by becoming the first offshore crypto entities to receive conditional approval from the FIU, subject to the payment of penalties.
The FIU’s decision followed a comprehensive review of written and oral submissions from Binance. The FIU statement confirmed that the charges against Binance were substantiated based on the evidence presented.
Dilip Chenoy, Chairman of the Bharat Web3 Association, emphasized the importance of compliance in the industry, stating, “We urge all industry participants to strictly adhere to laws related to anti-money laundering (AML) and combating the financing of terrorism (CFT).”
The Director of FIU-IND has mandated a total penalty of approximately $2.2 million on Binance and issued specific directives to ensure rigorous compliance with AML obligations.
