- Binance fined $2.25 million by FIU India for violating anti-money laundering regulations.
- Binance registered with FIU in May after being issued a show-cause notice in December 2023.
- Virtual digital asset providers must comply with India’s Prevention of Money Laundering Act.
The Financial Intelligence Unit (FIU) of India has fined Binance, the world’s largest crypto exchange, $2.25 million for violating anti-money laundering regulations. This penalty follows Binance’s registration with FIU in May, after a show-cause notice was issued in December 2023. Binance was among nine offshore exchanges, including KuCoin, Huobi, and Kraken, accused of violating local rules.
In January, the Indian government blocked URLs of these exchanges and delisted their apps from Google and Apple app stores. Virtual digital asset service providers are required to register with FIU as ‘reporting entities’ and comply with the Prevention of Money Laundering Act (PMLA), 2002. Previously, FIU lifted a ban on KuCoin in March after imposing a penalty of Rs 34.5 lakh.
Adding to Binance’s troubles, former CEO Changpeng Zhao was sentenced to four months in prison earlier this year for violating US anti-money laundering laws. This series of events highlights the increasing regulatory scrutiny on cryptocurrency exchanges worldwide.
