Binance, a leading blockchain and cryptocurrency platform, has been slapped with a hefty fine of Rs 18.82 crore by the Financial Intelligence Unit (FIU) to resume operations in India. The FIU, the country’s financial watchdog, found that Binance had been operating in India in violation of domestic anti-money laundering regulations. The FIU, in a notification on Thursday, stated that after reviewing written and oral submissions from Binance, the Director, FIU-IND, found the charges against the company to be substantiated.
The notification further outlined that specific directions have been issued to Binance to ensure strict adherence to the Prevention of Money Laundering Act (PMLA) of 2002, in conjunction with the PMLA Maintenance of Record Rules (PMLA Rules) of 2005. These rules are crucial for preventing money laundering activities and combating the financing of terrorism.
It’s worth noting that Binance registered with the FIU in May 2023 as part of its efforts to resume operations in India. This move followed a show-cause notice issued in December 2023 by the FIU, along with eight other offshore exchanges that were operating in violation of local rules. The crypto exchange had been barred from operating in India for failing to comply with local regulations, as part of the FIU’s crackdown on offshore crypto exchanges operating in the country without registration.
Interestingly, rival crypto exchange KuCoin managed to fully register and become operational after paying a fine of Rs 34.5 lakh. This highlights the financial watchdog’s efforts to regulate the crypto industry in India and ensure compliance with domestic regulations.
