India’s Financial Intelligence Unit (FIU) has imposed a fine of 188.2 million rupees ($2.25 million) on Binance, the world’s largest cryptocurrency exchange, for operating in the country without adhering to local anti-money laundering regulations. This marks a significant enforcement action against a major player in the global crypto market.
According to Indian regulations, virtual digital asset service providers, including crypto exchanges, must register with the FIU as reporting entities and comply with anti-money laundering rules. Binance’s failure to comply with these requirements led to the hefty penalty.
Binance has not yet responded to requests for comments on the matter.
In an attempt to resume operations in India, Binance registered with the FIU in May following the issuance of show-cause notices to nine offshore exchanges found violating local laws. The FIU also recommended that the Ministry of Electronics and Information Technology block online access to these non-compliant exchanges.
Another crypto exchange, KuCoin, registered with the FIU in March but received a smaller fine of 3.45 million rupees for similar violations.
Binance’s regulatory troubles are not confined to India. In May, Canada’s anti-money laundering agency fined the exchange $4.38 million for breaches of anti-money laundering regulations. Additionally, Changpeng Zhao, Binance’s former CEO, was sentenced to four months in prison by U.S. District Judge Richard Jones in Seattle after pleading guilty to violating U.S. anti-money laundering laws.
These enforcement actions underscore the growing regulatory scrutiny faced by cryptocurrency exchanges worldwide.
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