News
Indian financial regulator fines crypto exchange Binance $2.25 million
Binance has been fined $2.25 million in India for operating in the country in violation of local anti-money laundering rules.
India’s Financial Intelligence Unit (FIU) has imposed a multi-million fine on Binance as the cryptocurrency exchange failed to register with the FIU to comply with its anti-money laundering (LBC) rules.
In an official press release dated June 19 statement, the regulator said it had imposed a total fine of 188.2 million rupees (around $2.25 million) for violating several AML rules as well as guidelines focused on combating terrorist financing. As of press time, Binance has not made any public statement on the matter.
According to a Chainalysis reportIndia is one of the fastest growing crypto economies, with the highest adoption rate in 2023. As of mid-April, crypto.news reported that Binance agreed to pay an additional $2 million penalty following a four-month ban imposed on the exchange by the FIU.
Before January to forbid, Binance is said to have dominated more than 90% of Indian cryptocurrency trading volume. The stock market’s popularity increased as traders sought to bypasses tax implications imposed by the Indian government.
In March, India’s Ministry of Finance required all crypto businesses to register with the FIU and comply with the provisions of the PMLA. As of December 2023, 28 cryptocurrency companies have already registered with the national agency AML, as reported by crypto.news.
Crypto remains a contentious issue in India, with regulators divided on how to approach the emerging industry. Indian Finance Minister Nirmala Sitharaman called on international collaboration to build a comprehensive crypto framework and urged governments to consider the merits of blockchain. However, the Reserve Bank of India has not changed its stance on crypto and has advocated for a blanket ban on digital assets.