Jai Sahu
Financial Penalty Imposed by India’s FIU
The Financial Intelligence Unit (FIU) of India has levied a substantial fine of $2.2 million (approximately Rs 18.82 crore) on Binance, the largest global cryptocurrency exchange.
Conditional Approval Granted to Restart Services
Binance has received conditional approval from India’s anti-money laundering agency to restart its operations in India, following the fulfillment of specific regulatory requirements.
- The Financial Intelligence Unit of India has imposed a $2.2 million fine on Binance for its operations within the country.
- In May, the anti-money laundering unit granted approval to Binance to operate in India, subject to the payment of a financial penalty.
Binance was fined for offering services to Indian customers without complying with the country’s anti-money laundering regulations, according to a statement released by the anti-money laundering unit last Thursday.
In January 2024, Binance, along with other offshore cryptocurrency exchanges, was issued show cause notices by Indian authorities and subsequently barred from operating in India for “operating illegally.”
However, after a formal hearing, Binance became the first offshore crypto-related entity, along with KuCoin, to gain approval from India’s Financial Intelligence Unit in May, provided they paid the stipulated fine.
“After considering the written and oral submissions of Binance, the Director of FIU-IND, based on the material available on record, found that the charges against Binance were substantiated,” the FIU announced.
“We call upon all industry participants to strictly adhere to laws related to anti-money laundering (AML) and combating the financing of terrorism (CFT),” said Dilip Chenoy, Chairman of the Bharat Web3 Association.
“Consequently, the Director FIU-IND” 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,” the announcement added.
Binance has not yet responded to a request for comment from CoinDesk.