Binance Fined $2.2M by India’s Financial Intelligence Unit

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Binance became the first offshore crypto-related entity, along with KuCoin, to be approved by India’s Financial Intelligence Unit (FIU) in May, conditional to paying a penalty.

Binance Fined https://www.bee.com/wp-content/uploads/2024/06/1111.jpg.2M by India’s Financial Intelligence Unit

India’s Financial Intelligence Unit imposes $ 2.2 million fine in Binance.
The anti-money laundering unit approved Binance in May, conditional to penalty payment.

Binance, the world’s largest cryptocurrency exchange, has been fined approximately $2.2 million (18.82 crore INR) for providing services to Indian clients without adhering to the nation’s anti-money laundering rules, India’s anti-money laundering unit announced Thursday.

Binance and several other offshore cryptocurrency exchanges were issued showcause notices by Indian authorities and subsequently removed from India for “operating illegally” in January 2024.

However, Binance became the first offshore crypto-related entity, along with KuCoin, to be approved by India’s Financial Intelligence Unit (FIU) in May, conditional to paying a penalty after a hearing with the FIU.

“After considering the written and oral submissions of the Binance, Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated,” the FIU announcement said.

“We call upon all industry participants to strictly adhere to laws related to anti-money laundering (AML) and combating the financing of terrorism (CFT),” said Dilip Chenoy, Chairman, Bharat Web3 Association.

“Consequently, the Director FIU-IND” ordered the imposition of a “total penalty” of approximately $2.2 million on Binance along with “specific directions to ensure diligent compliance with the obligations.”

Binance did not immediately respond to a CoinDesk request for comment.

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