Binance fined $2.25M by India’s Financial Intelligence Unit

[Bitcoin Smith]

India’s Financial Intelligence Unit (FIU) has imposed a 188.2 million rupees ($2.25 million) fine on crypto exchange Binance for providing services to Indian clients without adhering to the nation’s Anti-Money Laundering (AML) rules.

On Thursday, June 19, the agency announced that the penalty applies to multiple violations of the Prevention of Money Laundering Act (PMLA), 2002.

Binance operates as a Virtual Digital Asset Service Provider, which qualifies it as a reporting entity (RE) under Section 2 (as) (vi) of the PMLA. This designation requires maintaining and reporting transaction records and ensuring robust AML measures.

However, FIU’s investigation revealed that Binance failed to adhere to these obligations when providing services to Indian clients. Indian authorities issued show-cause notices to Binance and several other offshore cryptocurrency exchanges, banning them from India for “operating illegally” in January 2024.

In May, Binance became the first offshore crypto-related entity, along with KuCoin, to be approved by the Financial Intelligence Unit. The approval was conditional on paying a penalty after a hearing with the FIU.

Binance fined $2.25M by India’s Financial Intelligence Unit

So it's official now, Binance adhered to the FIU compliants and ready to get back into operation.

I checked https://www.binance.com/en-IN which is still not opening from any of my devices and also they are still not available in the play store but we can expect they will be back online soon.

[TheUltraElite]

Fines and modifications, these things run hand in hand because exchanges start outside in other countries eventually come to another country and has to face the music here and dont follow their AML rules till a few years pass and then that country's authorities start cracking up on them.

Good thing is that at present they have modified things to be in line with the FIU. Maybe we will see them restarting operations and getting their app back online on the Indian market.

[Bitcoin Smith]

Fines and modifications, these things run hand in hand because exchanges start outside in other countries eventually come to another country and has to face the music here and dont follow their AML rules till a few years pass and then that country's authorities start cracking up on them.

Good thing is that at present they have modified things to be in line with the FIU. Maybe we will see them restarting operations and getting their app back online on the Indian market.

This is not new to Binance, they faced this in US and also facing in UK now in India, since they are accepted everything they might resume their operations soon and the fine amount is just a tip for them considering how much potential revenue they can make from the 1.4B people.