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 India’s Financial Intelligence Unit (FIU) has fined Binance over 188.2 million rupees (approximately 2.25 million USD) for failing to register and comply with the country’s anti-money laundering (AML) regulations.&nbsp; 
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The FIU<a style="color: #0000ff;" href="https://fiuindia.gov.in/pdfs/judgements/Binance_Order_10_2024.pdf"> announced</a> that Binance violated multiple AML rules and directives aimed at combating the financing of terrorism, and its investigation into the exchange’s activities confirmed these violations. 
Binance has yet to issue a public response. 
The FIU<a style="color: #0000ff;" href="https://finance.yahoo.com/news/binance-kucoin-other-exchanges-served-070847058.html"> sent notices</a> to Binance, KuCoin, and several other major crypto platforms in December 2023, following the <a style="color: #0000ff;" href="https://defi-planet.com/2023/03/indian-authorities-demand-compliance-with-anti-money-laundering-regulations-for-crypto-transactions/">Indian Ministry of Finance’s directive</a> in March of the same year that all cryptocurrency businesses must register with the regulator and adhere to the provisions of the Prevention of Money Laundering Act (PMLA). The FIU claimed that many offshore entities serving Indian users were not registered. Thus, it could not prove their adherence to the Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) framework. 
The FIU reportedly banned the exchange in January 2024 while it conducted further investigations. In April, it was<a style="color: #0000ff;" href="https://economictimes.indiatimes.com/tech/technology/binance-coins-a-new-phase-in-india/articleshow/109382161.cms?from=mdr"> rumoured</a> that it might pay a $2 million penalty fee. By May, the exchange<a style="color: #0000ff;" href="https://www.binance.com/en-IN/square/post/7914261656074"> reportedly</a> began registering with the FIU while awaiting the verdict of ongoing investigations. 
Notably, Binance’s successes in establishing a base in the Indian market, which is now one of the fastest-growing crypto markets, with the highest adoption rate globally in 2023, according to a<a style="color: #0000ff;" href="https://www.chainalysis.com/blog/2023-global-crypto-adoption-index/"> Chainalysis report</a>, have been punctuated by these developments.&nbsp; 
Before this ban, Binance<a style="color: #0000ff;" href="https://ca.finance.yahoo.com/news/90-wazirxs-user-assets-binance-090949536.html"> controlled</a> over 90% of India’s crypto trading volume, gaining popularity among traders looking to avoid the stringent tax measures introduced by the Indian government. 
The regulation of cryptocurrency in India remains a contentious issue, with differing opinions among regulators. Finance Minister Nirmala Sitharaman has<a style="color: #0000ff;" href="https://www.freepressjournal.in/business/global-fintech-fest-2023-from-surge-in-tax-filing-to-crypto-here-are-key-points-covered-by-fm-nirmala-sitharaman"> advocated</a> for international collaboration to create a comprehensive crypto framework, emphasizing the potential benefits of blockchain technology. Conversely, the Reserve Bank of India<a style="color: #0000ff;" href="https://m.rbi.org.in//Scripts/BS_SpeechesView.aspx?Id=1196"> continues</a> to push for a total ban on digital assets. 
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The post <a href="https://defi-planet.com/2024/06/indias-fiu-fines-binance-2-25m-for-aml-violations/">India’s FIU Fines Binance $2.25M for AML Violations</a> appeared first on <a href="https://defi-planet.com">DeFi Planet</a>.

India’s FIU Fines Binance $2.25M for AML Violations

DeFi Planet

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