India Slaps Binance with $2.2 Million Fine Over AML Violations
Binance has been slapped with a fine of approximately $2.2 million (18.82 crore INR) by India’s anti-money laundering unit. The fine is for providing services to Indian clients without complying with the country’s anti-money laundering (AML) regulations.
The announcement was made by the Financial Intelligence Unit (FIU) on Thursday. The penalty comes after Binance and several other offshore cryptocurrency exchanges were issued showcause notices. They were also subsequently banned from operating in India in January 2024 for “operating illegally.”
Key points:
- Binance fined $2.2 million by India’s FIU for violating AML rules.
- The exchange was previously banned from India in January 2024 for “operating illegally.”
- Binance became the first offshore crypto-related entity, along with KuCoin, to be approved by India’s FIU in May, conditional on paying a penalty.
- Binance has been ordered to pay the penalty and follow specific directions to ensure compliance with AML obligations.
Binance, along with KuCoin, became the first offshore crypto-related entities to be approved by India’s FIU in May. However, this approval was conditional on the exchanges paying a penalty post an FIU hearing.
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Binance’s $2.2 million penalty comes with specific directions
The regulator’s announcement stated that “after considering the written and oral submissions of Binance, Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated.”
The FIU’s decision to impose a “total penalty” of approximately $2.2 million on Binance also comes with specific directions to ensure the exchange’s diligent compliance with its AML obligations. Dilip Chenoy, Chairman of the Bharat Web3 Association, called upon all industry participants to strictly adhere to laws related to AML.
The penalty imposed on Binance is a result of a notice issued by the FIU in December 2023. The FIU’s order also sends a clear message to other cryptocurrency exchanges operating in India or seeking to enter the market.
