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India’s financial regulator imposes $2.25 million fine on cryptocurrency exchange Binance
By Jaspreet Kalra
MUMBAI (Reuters) – India’s Financial Intelligence Unit (FIU) has imposed a fine of 188.2 million rupees ($2.25 million) on the world’s largest cryptocurrency exchange, Binance, for operating in the country in violation local anti-money laundering regulations.
India requires virtual digital asset service providers such as cryptocurrency 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 that were operating in violation of local regulations.
The watchdog also asked the Ministry of Electronics and Information Technology to block online access to stock exchanges.
Cryptocurrency exchange KuCoin had registered with the FIU in March but faced a minor fine of 3.45 million rupees.
In May, Canada’s anti-money laundering agency also fined Binance $4.38 million for violating anti-money laundering regulations.
Changpeng Zhao, former CEO 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)