Binance Fined $2.2M by India’s Financial Intelligence Unit
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 rules. This was announced by India’s Financial Intelligence Unit (FIU) on Thursday.
Earlier this year, Binance and several other offshore cryptocurrency exchanges were issued showcause notices by Indian authorities and subsequently removed from India for "operating illegally" in January 2024.
In May, Binance, along with KuCoin, became the first offshore crypto-related entities to be conditionally approved by India's FIU. This approval was contingent upon Binance paying the penalty after a hearing with the FIU.
Details of the Fine
Dilip Chenoy, the Chairman of Bharat Web3 Association, emphasized the importance of adhering to laws related to anti-money laundering (AML) and combating the financing of terrorism (CFT). He issued a statement urging all industry participants to strictly follow these laws.
"After considering the written and oral submissions of Binance, the Director of FIU-IND found that the charges against Binance were substantiated," the FIU announcement said.
As a result, the FIU imposed a total penalty of approximately $2.2 million on Binance and issued specific directions to ensure diligent compliance with their obligations.
Industry Implications
This action by India's FIU serves as a stern reminder to all cryptocurrency exchanges operating within the country. They are required to strictly adhere to the regulations related to AML and CFT to avoid similar penalties.
"We call upon all industry participants to maintain strict compliance with the laws to promote a safe and legal environment for cryptocurrency trading," Chenoy added.
Binance has not yet responded to a request for comment on the fine.
Conclusion
This significant fine imposed on Binance underscores the importance of regulatory compliance in the cryptocurrency industry. It also highlights India's stringent measures to combat illegal financial activities and ensure a secure trading environment.
Stay Updated: Keep following for more updates on the latest in the cryptocurrency world and compliance regulations.
