Binance, the crypto exchange, has been fined $2.2 million by the Financial Intelligence Unit (FIU) of India for failing to comply with local anti-money laundering (AML) standards. The FIU stated that Binance did not register in the country and did not adhere to local AML regulations, leading to the significant penalty. This is a major setback for Binance, as it already faces complex international financial regulations.
In India, crypto exchanges and virtual asset suppliers are required to register as reporting companies with the FIU and follow strict AML regulations. However, Binance failed to properly register with the FIU before starting its business in the nation, which resulted in the penalties. This case is noteworthy because it follows the FIU’s previous prosecution of offshore exchanges for similar violations. It is part of India’s broader efforts to regulate the crypto market.
Binance attempted to conform to Indian legislation by registering with the FIU in May. The FIU had previously warned offshore exchanges, including Binance, for operating without the necessary permission. However, despite this effort, Binance is now facing financial penalties due to its previous non-compliance.
Furthermore, Binance faces increasing regulatory challenges, with the Indian penalty being the latest in a series of fines. In May, Canada’s anti-money laundering agency fined Binance $4.38 million for similar AML regulation breaches. These recurring issues indicate that Binance struggles to meet the requirements of various foreign regulatory systems.
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