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India’s financial regulator hits cryptocurrency exchange Binance with $2.25 million fine
Binance has been hit with a $2.25 million fine in India for operating in the country in violation of local anti-money laundering regulations.
India’s Financial Intelligence Unit (FIU) has imposed a multi-million fine Binance as the cryptocurrency exchange did not register with the FIU to comply with anti-money laundering regulations (anti-money laundering) rules.
In an official on June 19 declaration, the regulator said it imposed a total fine of 188.2 million rupees (about $2.25 million) for violating multiple anti-money laundering rules and directives focused on combating terrorist financing. As of this writing, Binance has not made any public statements on the matter.
According to a chain of analysis relationshipIndia 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 another $2 million fine following a four-month ban imposed on the exchange by the FIU.
Before January banBinance reportedly dominated over 90% of Indian cryptocurrency trading volume. The popularity of the exchange increased as traders tried to make it ring road tax implications imposed by the Government of India.
In March, India’s Ministry of Finance mandated that all companies operating in the cryptocurrency sector register with the FIU and comply with PMLA provisions. As of December 2023, 28 cryptocurrency companies had already done so registered with the national anti-money laundering agency, as reported by crypto.news.
Cryptocurrencies remain a contentious issue in India, with regulators divided over how to approach the emerging sector. The Indian Finance Minister, Nirmala Sitharaman, called on international collaboration to build a comprehensive cryptographic framework and urged governments to consider the merits of blockchain. However, the Reserve Bank of India has not changed its stance on cryptocurrencies and has supported a blanket ban on digital assets.