Binance fined USD 2.2 mln by India's Financial Intelligence Unit

Friday 21 June 2024 15:17 CET | News

Crypto exchange Binance has been approved by India’s Financial Intelligence Unit, conditional to paying a penalty for providing services to Indians without adhering to AML rules.


Binance has been approved by India’s Financial Intelligence Unit, conditional to paying a penalty for providing services to Indians without adhering to AML rules.

In May 2024, Binance and KuCoin became the first offshore crypto-related entities to receive approval from India’s Financial Intelligence Unit (FIU), contingent on paying a penalty. Binance, one of the world's largest cryptocurrency exchanges, was fined around USD 2.2 million for offering services to Indian clients without complying with the country's anti-money laundering regulations, as announced by India's anti-money laundering unit.

Officials from the FIU said that after considering the written and oral submissions of Binance, the FIU, based on the material available on record, found that the charges against Binance were substantiated. They call upon all industry participants to strictly adhere to laws related to anti-money laundering (AML) and combating the financing of terrorism (CFT). Consequently, the FIU ordered the imposition of a total penalty of approximately USD 2.2 million on Binance along with ‘specific directions to ensure diligent compliance with the obligations.’

Representatives from Binance commented that they are aware of the FIU's order and are reviewing it to determine next steps. They are grateful to have the opportunity to continue their mission to serve the vibrant Indian crypto community. They wish to work with the FIU as a reporting entity and they are happy about re-entering the Indian market to contribute positively, should they be able to do so in the near future. They remain dedicated to maintaining transparency, fostering cooperation, and ensuring compliance with regulatory authorities.

Previous hurdles for Binance

In March 2024, the Philippines planned to block access to Binance by June 2024 due to unlicensed operations, giving investors time to close their positions. The SEC, with help from the National Telecommunication Commission, aimed to block Binance's website and platform, citing risks to Filipino investors' funds. The SEC alleged Binance violates the Securities Regulation Code by offering unlicensed investment products and has asked Google and Meta to block Binance ads for Filipino users.

In November 2023, Binance has agreed to pay USD 4 billion to settle a US Department of Justice investigation into violations of the Bank Secrecy Act, failure to register as a money transmitting business, and the International Emergency Economic Powers Act. Binance's founder and CEO, Changpeng Zhao, has resigned after pleading guilty to failing to maintain an effective anti-money laundering programme. The settlement included coordinated resolutions with FinCEN, OFAC, and the CFTC. Despite claiming to block US customers and launching a separate US exchange, Binance continued serving high-value US clients and allowed trades with sanctioned jurisdictions, leading to significant penalties and a three-year compliance monitoring period.

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Keywords: cryptocurrency, AML, trading platform, cryptocurrency exchange, digital assets
Categories: DeFi & Crypto & Web3
Companies: Binance
Countries: India
This article is part of category

DeFi & Crypto & Web3


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