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Binance fined $2.2 million by Indian Financial Intelligence Unit
Binance, the world’s largest cryptocurrency exchange, has been fined around $2.2 million (INR 18.82 crore) for providing services to Indian customers without adhering to domestic anti-trust rules. -money laundering, India’s anti-money laundering unit. announced Thursday.
Binance and several other offshore cryptocurrency exchanges were issued show cause notices by Indian authorities and then expelled from India for “illegal operation” in January 2024.
However, Binance became the first crypto-related offshore entity, along with KuCoin, to be approved by India’s Financial Intelligence Unit (FIU) in May, subject to payment of a fine after a hearing with the FIU.
“After reviewing the written and oral submissions of Binance, the Director of the FIU-IND, based on the elements available in the file, concluded that the accusations against Binance were founded,” the FIU press release said.
“We call on all players in the sector to strictly comply with laws relating to anti-money laundering (AML) and combating the financing of terrorism (CFT),” said Dilip Chenoy, president of the association. Bharat Web3.
“As a result, the FIU-IND Director” ordered the imposition of a “total fine” of approximately $2.2 million on Binance along with “specific instructions to ensure diligent compliance with the obligations.”
“We are aware of the FIU’s order and are now reviewing it to determine next steps. We are grateful for the opportunity to continue our mission of serving India’s vibrant crypto community. We look forward to working with the FIU as a reporting entity and we “We are excited to re-enter the Indian market to contribute positively, if we are able to do so in the near future. We remain committed to maintaining transparency, fostering cooperation, and ensuring compliance with regulatory authorities,” Binance said in a statement.
UPDATE (June 20, 06:40 UTC): Adds a comment from the Bharat Web3 association.
UPDATE (June 20, 12:30 UTC): Adds response from Binance.