The Financial Intelligence Unit has imposed a fine of Rs 18.82 crore on Binance, the world's largest cryptocurrency exchange, for operating in India in violation of domestic anti-money laundering regulations.
"After considering the written and oral submissions of Binance, the Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated." a notification by FIU said. "Furthermore, specific directions have also been issued to Binance to ensure diligent compliance with the obligations outlined in Chapter IV of the Prevention of Money Laundering Act (PMLA) of 2002, in conjunction with the PMLA Maintenance of Record Rules (PMLA Rules) of 2005 for the prevention of money laundering activities and combating the financing of terrorism (AMLCFT)," it added
Binance had registered with the Financial Intelligence Unit in May as it sought to resume operations in the country after being issued a show-cause notice by the financial watchdog in December 2023, along with eight other offshore exchanges that were operating in violation of local rules.
In December, Binance was barred from operating in India for not complying with local regulations as part of the financial watchdog's crackdown on offshore crypto exchanges that were operating in the country without registration.
Binance can now resume operations only after paying the penalty for previous non-compliance. Virtual digital asset service providers, like crypto exchanges should comply with obligations mandated under the country's anti-money laundering rules in India
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