Binance receives Rs 18.82 Cr penalty imposed by Financial Intelligence Unit
For breaking anti-money laundering laws, Binance, the biggest cryptocurrency exchange in the world, has been fined Rs 18.82 crore, or $2.25 million, by the Financial Intelligence Unit (FIU).
The fine was applied one month following the FIU’s approval of Binance’s Indian registration. According to reports, nine offshore exchanges received show-cause notices from the money laundering watchdog for breaking the rules.
The FIU released a press release stating that Binance was given notices in December 2023 for operating in India and offering services to Indian clients without following the legal requirements under Section 13 of the PMLA Act.
In May of this year, the FIU approved KuCoin, a cryptocurrency exchange platform, subject to fines following the regulator hearing. Binance was also granted approval at that time. KuCoin was fined Rs 34.5 lakhs as well.
Canada’s financial watchdog levied a $4.4 million fine against Binance in May for breaking laws against money laundering and terrorist financing.
“This significant penalty is a clear indication of the increasing scrutiny and regulation in the digital asset space. I believe that the regulations are getting more organized for cryptocurrency exchanges. Sustained efforts by FIU-IND will lead to a fertile ground for Web3 businesses to grow and enable India to become a $1 trillion digital economy,” Shivam Thakral, CEO of BuyUcoin, said in a statement.
