India’s Financial Intelligence Unit (FIU) Fines Binance $2.2M

Twitter icon  •  Published vor 3 Wochen  •  Hassan Maishera

Cryptocurrency exchange Binance has been fined $2.2 million by India’s Financial Intelligence Unit for violating the country’s AML rules.

TL;DR

  • Crypto exchange Binance has been fined $2.2 million by India’s Financial Intelligence Unit.

  • Binance was accused of failing to follow India’s AML rules. 

Binance Fined $2.2M By India’s FIU

Cryptocurrency exchange Binance has been fined approximately $2.2 million (18.82 crore INR) by India’s Financial Intelligence Unit (FIU) for providing services to Indian clients without complying to the country’s anti-money laundering (AML) rules.

In its announcement on Thursday, the FIU revealed that Binance and several other offshore cryptocurrency exchanges were issued showcause notices by Indian authorities. The exchanges were then removed from India for operating illegally in the country in January 2024. 

However, in May, Binance and KuCoin became the first off-shore crypto exchanges to be approved by India's Financial Intelligence Unit (FIU). Their approval were conditional to paying a penalty after a hearing with the FIU. The FIU said,

"After considering the written and oral submissions of the Binance, Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated." 

While commenting on this latest development, Dilip Chenoy, Chairman, Bharat Web3 Association, said,

"We call upon all industry participants to strictly adhere to laws related to anti-money laundering (AML) and combating the financing of terrorism (CFT). Consequently, the Director FIU-IND" ordered the imposition of a "total penalty" of approximately $2.2 million on Binance along with "specific directions to ensure diligent compliance with the obligations."

In its statement, Binance said,

"We are aware of the FIU's order and are reviewing it now to determine next steps. We are grateful to have the opportunity to continue our mission to serve the vibrant Indian crypto community. 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 maintaining transparency, fostering cooperation, and ensuring compliance with regulatory authorities." 

Binance has been facing regulatory challenges in recent years but continues to work hard to comply with regulatory requirements in different countries. It is currently the leading cryptocurrency exchange in the world, processing over $15 billion in transaction volume daily.

 

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Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.