Binance Slapped with $2.25 Million Fine by India’s FIU for AML Violations
India’s Financial Intelligence Unit (FIU) has imposed a hefty fine of 188.2 million rupees ($2.25 million) on Binance, the world’s largest cryptocurrency exchange, for failing to comply with local anti-money laundering (AML) regulations. This marks the highest fine ever imposed on a crypto entity in India for non-compliance with AML laws.
Under Indian regulations, virtual digital asset service providers, including crypto exchanges, are required to register with the FIU as reporting entities and adhere to its AML rules. Binance’s failure to meet these requirements has resulted in the significant penalty. The exchange has not yet provided a response to the fine.
Binance took the step to register with the FIU in May after receiving show-cause notices from the watchdog in an attempt to resume its operations in the country. These notices were issued to nine offshore exchanges that were found to be operating in violation of local regulations. As part of its crackdown, the FIU also recommended that the Ministry of Electronics and Information Technology block online access to these exchanges.
This incident is not the first time a cryptocurrency exchange has faced penalties for AML violations in India. In March, KuCoin, another major crypto exchange, registered with the FIU and was fined a smaller amount of 3.45 million rupees for similar infractions.
Binance has faced regulatory scrutiny on a global scale. In May, Canada’s anti-money laundering agency imposed a substantial fine of $4.38 million on the exchange for breaching AML regulations. Furthermore, Changpeng Zhao, Binance’s former CEO, was sentenced to four months in prison by U.S. District Judge Richard Jones in Seattle after pleading guilty to violating American AML laws.
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