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Binance fined $2.2 million by India’s 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 the nation’s anti-money laundering regulations, India’s anti-money laundering unit . announced Thursday.
Binance and several other offshore cryptocurrency exchanges were issued notices by Indian authorities and subsequently removed from India for “operating illegally” in January 2024.
However, Binance became the first cryptocurrency-related offshore entity, along with KuCoin, to be approved by India’s Financial Intelligence Unit (FIU) in May, on the condition that they pay a fine after a hearing with the FIU.
“After considering Binance’s written and oral representations, the Director of FIU-IND, based on available material on file, has determined that the allegations against Binance have merit,” the FIU announcement reads.
“We urge all industry participants to strictly comply with laws related to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT),” said Dilip Chenoy, president, Bharat Web3 Association.
“Accordingly, Director FIU-IND” ordered the imposition of a “total fine” of approximately $2.2 million on Binance along with “specific directions to ensure diligent compliance with obligations.”
Binance did not immediately respond to a request for comment from CoinDesk.
UPDATE (June 20, 12:40 UTC): Adds a comment from Bharat Web3 Association.