India Fines Binance $2.25 Million for AML Violations
For a long time, Binance, the world’s largest cryptocurrency exchange, has faced numerous legal challenges. Following the recent Binance France incident, the company has again come under legal scrutiny, this time in India.
According to reports, the Indian Financial Intelligence Unit (FIU) has imposed a $2.25 million fine on Binance for failing to comply with the country’s Prevention of Money Laundering Act of 2002. The Indian financial regulator previously issued subpoenas prohibiting the exchange from providing services to Indian customers. Several offshore exchanges offering services to Indian clients have also received similar notices.
On June 19, 2024, the FIU announced that Binance, as a virtual digital asset service provider operating in India, did not adhere to anti-money laundering (AML) protocols. Indian law mandates that cryptocurrency service providers comply with stringent AML regulations within the jurisdiction. The allegations against Binance suggest the company may not have maintained adequate records for reporting purposes. The FIU’s announcement stated, “After considering Binance’s written and oral representations, the Director of the FIU India Division concluded that the allegations against Binance are substantiated based on the existing records.”
Previously, Binance was permitted to resume its services in India under the condition that it would undergo government hearings and accept penalties for its actions. The FIU has also directed Binance to uphold robust AML programs and reporting procedures while continuing to serve Indian cryptocurrency enthusiasts.
In addition to the fine in India, Binance faces another penalty in Canada. The Financial Transactions and Reports Analysis Centre of Canada has fined Binance $4.4 million for failing to register as a money services business and not reporting transactions exceeding $10,000. However, Binance has appealed the charges, seeking their dismissal.
