21st June 2024- The Financial Intelligence Unit (FIU) has fined Binance, the world’s largest cryptocurrency exchange, Rs 18.82 crore (approximately $2.25 million) for breaching anti-money laundering regulations in India. This penalty was imposed shortly after Binance received approval for registration in the country from the FIU.
According to FIU’s press release, Binance was issued show-cause notices in December 2023 for operating in India and serving Indian clients without adhering to statutory obligations under Section 13 of the Prevention of Money Laundering Act (PMLA).
Alongside Binance, KuCoin, another crypto exchange, also obtained FIU approval in May but faces a penalty of Rs 34.5 lakhs pending further regulatory proceedings.
Earlier in May, Binance was fined $4.4 million by Canada’s financial regulator for violations of money laundering and terrorist financing laws.
“This substantial penalty underscores the heightened regulatory scrutiny in the cryptocurrency sector. The evolving regulatory environment is crucial for fostering a compliant ecosystem and supporting India’s ambitions as a leader in the digital economy,” said Shivam Thakral, CEO of BuyUcoin.
The FIU’s actions reflect a proactive stance towards enforcing compliance and ensuring accountability within India’s burgeoning cryptocurrency market.
Source:Link
