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Financial watchdog imposes fine of Rs 18.82 cr on cryptocurrency exchange Binance | Cryptocurrency
The world’s largest cryptocurrency exchange has violated India’s anti-money laundering rules, the Financial Intelligence Unit says
Although Binance has registered with the FIU, it will only be able to resume operations after paying a penalty for previous non-compliance. This has now been pegged at Rs 18.82 crore | Archive imageRaghav Aggarwal New Delhi
The Financial Intelligence Unit (FIU) has fined Binance, the world’s largest cryptocurrency exchange, Rs 18.82 crore for operating in India in violation of the country’s anti-money laundering regulations.
Binance registered with the FIU in May as it sought to resume operations in the country after receiving a show-cause notice from the financial regulator in December 2023, along with eight other offshore exchanges operating in violation of local rules.
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A notification on Thursday read: “After considering Binance’s written and oral representations, the Director, FIU-IND, based on the material available on file, has found that the allegations against Binance have merit.”
“Furthermore, specific directions have been issued to Binance to ensure diligent compliance with the obligations outlined in Chapter IV of the Prevention of Money Laundering Act (PMLA) 2002, in conjunction with the PMLA Maintenance of Record Rules (PMLA Rules) 2005 for the Prevention of Money Laundering Activities and Countering the Financing of Terrorism (AMLCFT),” he said.
In December, Binance was banned from operating in India for failing to comply with local regulations as part of financial authorities’ crackdown on offshore cryptocurrency exchanges operating in the country without registration.
India requires virtual digital asset service providers, such as cryptocurrency exchanges, to be registered with the FIU and comply with obligations imposed by the country’s anti-money laundering regulations.
Although Binance has registered with the FIU, it will only be able to resume operations after paying a penalty for previous non-compliance. This has now been pegged at Rs 18.82 crore.
The FIU had issued show-cause notices to nine offshore cryptocurrency exchanges in December 2023 for non-compliance with local regulations. He asked the Ministry of Electronics and Information Technology to block online access to stock exchanges.