Binance to pay $2,3 million fine for multiple violations of AML regulations in India

The Exchange re-entered the local market as a legal entity with registration with the Financial Intelligence Unit

20.06.2024 - 13:20

2 min

What's new? India's Financial Intelligence Unit (FIU) has imposed a fine of Rs. 188,2 million ($2,25 million) on cryptocurrency exchange Binance for providing services to local customers without complying with anti-money laundering (AML) regulations. The agency specified that the fine was imposed for multiple violations of the Prevention of Money Laundering Act (PMLA) 2002.

FIU order

What else is known? Binance operates as a virtual asset service provider, which according to the PMLA obliges it to maintain transaction records and reporting, as well as apply strict AML measures.

However, an FIU investigation found that Binance did not comply with these obligations when providing services to Indian customers. In January, authorities sent Binance and several other offshore cryptocurrency exchanges cease-and-desist orders due to illegal activities.

In April, media reported that Binance was ready to return to the Indian market after paying the fine as a legal entity with FIU registration. In May, Binance became the second overseas exchange after KuCoin to receive a permit to operate.

Earlier this month, the Nigeria Federal Inland Revenue Service dropped charges against Binance's top managers, who along with the exchange were defendants in a case involving over $20 billion in unpaid taxes.

Also in June, the number of registered users on Binance crossed the 200 million mark. This event occurred almost seven years after the launch of the platform. Binance now represents about 36% of the global crypto user base, which Triple-A Research estimates at 562 million.

Late last year, Binance agreed to pay $4,3 billion in fines to US agencies to settle money laundering allegations.

Author: