India’s Financial Watchdog Fines Binance $2.25 Million for AML Liolations

BySamson Ononeme

Jun 20, 2024 , , ,
India's Financial Intelligence Unit has imposed a penalty of 188.2 million rupees ($2.25 million) on cryptocurrency exchange Binance for violating anti-money laundering regulations while operating in the country without proper registration.

Key Insights

  • India’s financial regulator has imposed a penalty of 188.2 million rupees ($2.25 million) on Binance for violating anti-money laundering regulations.
  • The FIU found that Binance had offered services to Indian users without being registered under the country’s anti-money laundering laws.
  • The FIU has given Binance specific directives to ensure compliance with India’s AML regulations as the exchange seeks to re-enter the Indian market.

NEW DELHI (MarketsXplora) – India’s financial crime fighting agency has imposed a penalty of 188.2 million rupees ($2.25 million) on cryptocurrency exchange Binance for violating anti-money laundering regulations, according to an order issued on Thursday.

The Financial Intelligence Unit (FIU) determined that Binance had failed to adhere to rules stipulated under the Prevention of Money Laundering Act (PMLA) when it previously offered services to users in India without being registered in accordance with the country’s anti-money laundering (AML) laws.

“In December 2023, a notice was issued compelling Binance to demonstrate why appropriate action should not be taken against it,” the FIU order stated, referring to the exchange’s prior operations in India outside of AML regulatory purview.

The watchdog said it has now provided Binance with specific directives aimed at ensuring stringent compliance with Indian AML regulations going forward.

This enforcement action comes as Binance is reportedly eyeing a re-entry into the Indian market after being banned by the country’s regulators in January due to operating without a license.

A Binance spokesperson did not immediately respond to a request for comment on the FIU’s penalty order.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

Leave a Reply