Binance Fined $2.25 Million in India

Binance fined $2.25 million in India for breaching anti-money laundering regulations exchange vouches cooperation.

India’s Financial Intelligence Unit (FIU) has imposed a fine of $2.25 million (roughly Rs. 18.8 crore) on Binance. The financial watchdog announced the development on Thursday, June 20. India has claimed that the crypto exchange, touted as the largest in the world, was not adhering to the Prevention of Money Laundering Act, 2002 (PMLA), which is mandated for crypto firms to comply with in order to keep their operations running in the country.

India’s FIU explains fine on Binance

As per the official statement shared by the exchange, India had issued a notice questioning Binance about its service being provided to Indian citizens without complying with PMLA laws.

“Notice dated December 28, 2023, was issued to Binance pursuant to Section 13 of the Act, compelling Binance to demonstrate why appropriate action should not be undertaken against it for its dereliction of duties under the Act, despite its status as a reporting entity owing to its operations as a Virtual Digital Asset Service Provider,” FIU’s statement said.

Binance was supposedly given both written and verbal communication about FIU’s concerns. The FIU has said that the charges regarding Binance having violated India’s legal requirements to operate its business here stand substantiated.

“Consequently, the Director FIU-IND, vide order dated June 19, 2024, in exercise of powers under Section 13 PMLA, imposed a total penalty of Rs. 18,82,00,000 (Rupees eighteen crore eighty-two lakh only),” the financial authority noted.

Binance Reacts

In a statement shared with Gadgets360, a Binance spokesperson said that the exchange is presently reviewing the order it has received from the FIU-IND.

“We wish to work with the FIU as a reporting entity, and we are enthusiastic about reentering the Indian market to contribute positively, should we be able to do so in the near future. We remain dedicated to ensuring compliance with regulatory authorities,” the company spokesperson said.