Binance Fined $2.25M by India’s Financial Intelligence Unit

NAIROBI (CoinChapter.com) — India’s Financial Intelligence Unit (FIU) has fined cryptocurrency exchange Binance 188.2 million rupees ($2.25 million) for non-compliance with the country’s Anti-Money Laundering (AML) regulations.

Binance, operating as a Virtual Digital Asset Service Provider (VDA SP), qualifies as a reporting entity under the PMLA. Simply put, the exchange must maintain and report transaction records and implement robust AML measures, obligations that the FIU investigation says it failed to meet. The investigation led to show-cause notices and an eventual ban on Binance and other offshore exchanges in January 2024.

The FIU’s decision followed written and oral submissions from Binance’s director. The order detailed multiple contraventions, including failure to maintain transaction records and inform authorities. These actions are mandated under Sections 12(1) and 13 of the PMLA and related rules​​.

Binance Faces Global Regulatory Scrutiny

Binance has faced regulatory actions globally.

In May, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed a $4.4 million administrative monetary penalty on Binance for failing to register and report large digital asset transactions.

FINTRAC claimed Binance failed to register as a foreign money services business. The regulator also stated that Binance did not report transactions exceeding $10,000. Binance appealed against the allegations of noncompliance with AML and Countering the Financing of Terrorism regulations.

Furthermore, in February 2024, Nigerian authorities detained two Binance executives over tax evasion and money laundering allegations. These incidents reflect a broader trend of regulatory scrutiny faced by Binance and other crypto exchanges worldwide.