Binance to Pay Rs 188.2 Crore Fine in India to Resume Operations

The leading blockchain and cryptocurrency platform Binance will need to pay a fine of Rs 18.82 crore to resume operations in India.

The Financial Intelligence Unit (FIU) has imposed this penalty on the company for operating in the country without complying with domestic anti-money laundering regulations.

FIU Imposes Penalty on Binance for Violating AML Regulations

The Financial Intelligence Unit (FIU) has imposed a penalty on Binance after reviewing both written and oral submissions. The FIU found that Binance had substantiated charges against it, leading to the imposition of a fine. Additionally, specific directives have been issued to ensure Binance complies diligently with the obligations outlined in the Prevention of Money Laundering Act (PMLA) of 2002 and its associated rules for preventing money laundering and combating the financing of terrorism (AML/CFT).

Binance had registered with the FIU in May to seek authorization for resuming operations in India. This move followed a show-cause notice issued by the financial watchdog in December 2023 to Binance and eight other offshore exchanges for operating in violation of local regulations.

India’s Crackdown on Crypto Exchanges: Binance and KuCoin

The crypto exchange Binance was prohibited from operating in India due to non-compliance with local regulations, as part of a broader crackdown by the financial watchdog on offshore crypto exchanges operating without registration in the country.

In contrast, rival crypto exchange KuCoin successfully obtained full registration and resumed operations after paying a fine of Rs 34.5 lakh.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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