Binance, one of the world’s largest cryptocurrency exchanges, has been fined approximately USD 2.2 million by India’s Financial Intelligence Unit (FIU) for providing services to Indian clients without adhering to anti-money laundering (AML) regulations. This penalty comes as part of the conditional approval granted to Binance and KuCoin, making them the first offshore crypto entities approved by the FIU in May 2024.
The FIU’s decision followed a thorough review of written and oral submissions from Binance. Based on the evidence, the FIU found the charges against Binance substantiated, underscoring the importance for all industry participants to strictly adhere to AML and combating the financing of terrorism (CFT) laws. Consequently, the FIU has imposed a penalty of around USD 2.2 million on Binance and issued specific directives to ensure diligent compliance with regulatory obligations.
Binance has acknowledged the FIU’s order and is currently reviewing it to determine their next steps. The company expressed gratitude for the opportunity to continue serving the Indian crypto community and emphasized their commitment to transparency, cooperation, and regulatory compliance. Binance representatives stated their willingness to work closely with the FIU as a reporting entity and their eagerness to re-enter the Indian market to contribute positively in the near future.
This development represents a crucial milestone for the Indian cryptocurrency landscape, underscoring the vital role of regulatory compliance in creating a secure and transparent environment for digital asset transactions.