Binance, one of the world’s largest cryptocurrency exchanges, has been fined 188.2 million Indian Rupees ($2.25 million) by India’s financial watchdog for violating the country’s anti-money laundering (AML) regulations.
The Financial Intelligence Unit (FIU) issued the penalty order on Wednesday under the Prevention of Money Laundering Act. According to the regulator, a notice was sent to Binance in December 2023, requiring the exchange to explain why appropriate action should not be taken against it.
The notice was likely related to Binance’s previous services to local clients and operations within India without registering under the country’s AML regulations. In addition to the fine, the FIU has also provided Binance with specific instructions to ensure strict compliance with India’s AML laws moving forward.
This development comes as Binance is reportedly seeking to re-enter the Indian market after being banned by Indian regulators in January. The exchange did not immediately respond to requests for comment on the matter.
Binance in trouble
The FIU’s action highlights the increasing scrutiny that cryptocurrency exchanges face from regulators worldwide, particularly in relation to AML and know-your-customer (KYC) compliance. Binance in particular has been facing significant trouble in its dealings with regulators worldwide.
As ReadWrite reported in late April, US prosecutors are pushing for a 36-month prison term for Changpeng Zhao, the founder of cryptocurrency exchange Binance. Zhao is not the only Binance official currently in trouble either.
After Binance halted its services in Nigeria at the beginning of March two company representatives were arrested in the country, which was followed by the firm issuing a statement requesting their release.
