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Indian financial watchdog imposes $2.25 million penalty on crypto exchange Binance
By Jaspreet Kalra
MUMBAI (Reuters) – India’s Financial Intelligence Unit (FIU) has fined the world’s largest crypto exchange Binance 188.2 million rupees ($2.25 million) for operating in the country in violation of local anti-money laundering regulations.
India requires virtual digital asset service providers such as crypto exchanges to be registered with the FIU as a reporting entity and comply with its anti-money laundering rules.
Binance did not immediately respond to an email seeking comment.
In May, Binance registered with the FIU as the exchange sought to resume operations in the country after the watchdog issued show cause notices to nine offshore exchanges operating in violation of local rules.
The watchdog had also asked the Ministry of Electronics and Information Technology to block online access to the stock exchanges.
Crypto exchange KuCoin had registered with the FIU in March, but faced a lesser penalty of Rs 3.45 million.
Canada’s anti-money laundering agency also fined Binance $4.38 million in May for violating anti-money laundering rules.
Changpeng Zhao, the former chief executive of Binance, was sentenced to four months in prison in May by U.S. District Judge Richard Jones in Seattle after pleading guilty to violating the country’s anti-money laundering laws.
($1 = 83.4970 Indian rupees)
(Reporting by Jaspreet Kalra; Editing by Sohini Goswami)