Binance has been fined $2.25 million (Rs 18.82 crore ) by India’s Financial Intelligence Unit (FIU) for violating the country’s anti-money laundering regulations, reports Reuters. “After considering the written and oral submissions of Binance, the Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated” the financial watchdog said in a notification.
The notification stated that Binance had to pay a penalty of Rs 18.82 crore and also asked Binance to comply with “Chapter IV of the PMLA 2002, in conjunction with the PMLA Maintenance of Record Rules (PMLA Rules) of 2005 for prevention of money laundering activities and combating the financing of terrorism (AMLCFT) to maintain records of all transactions.”
Why FIU imposed penalty on Binance?
It is mandatory for virtual digital asset service providers like crypto exchanges in India to be registered with the FIU as a reporting entity and comply with its anti-money laundering rules. In May, Binance completed the initial registration with the FIU.
Earlier this year, FIU also blocked nine offshore exchanges in India for not registering and following local anti-money laundering regulations under the Prevention of Money Laundering Act (PMLA) 2002.
Binance rival KuCoin had faced a smaller penalty amount of Rs 34.5 lakh.
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The financial watchdog under the ministry of finance has also asked the ministry of electronics and information technology to block online access to the exchanges.
Binance fined by Canadian government
India is not the only country to impose fine on Binance. In May this year, Canada’s anti-money laundering agency had also imposed a fine of $4.38 million on Binance for violation of anti-money laundering rules.
US District Judge Richard Jones sentenced Changpeng Zhao, the former chief executive of Binance, to four months in prison in May after pleading guilty to violating the country’s laws against money laundering.
The notification stated that Binance had to pay a penalty of Rs 18.82 crore and also asked Binance to comply with “Chapter IV of the PMLA 2002, in conjunction with the PMLA Maintenance of Record Rules (PMLA Rules) of 2005 for prevention of money laundering activities and combating the financing of terrorism (AMLCFT) to maintain records of all transactions.”
Why FIU imposed penalty on Binance?
It is mandatory for virtual digital asset service providers like crypto exchanges in India to be registered with the FIU as a reporting entity and comply with its anti-money laundering rules. In May, Binance completed the initial registration with the FIU.
Earlier this year, FIU also blocked nine offshore exchanges in India for not registering and following local anti-money laundering regulations under the Prevention of Money Laundering Act (PMLA) 2002.
Binance rival KuCoin had faced a smaller penalty amount of Rs 34.5 lakh.
.
The financial watchdog under the ministry of finance has also asked the ministry of electronics and information technology to block online access to the exchanges.
Binance fined by Canadian government
India is not the only country to impose fine on Binance. In May this year, Canada’s anti-money laundering agency had also imposed a fine of $4.38 million on Binance for violation of anti-money laundering rules.
US District Judge Richard Jones sentenced Changpeng Zhao, the former chief executive of Binance, to four months in prison in May after pleading guilty to violating the country’s laws against money laundering.
