Binance fined for $2.2 Million by Indian Authorities

Major Penalty for Non-Compliance

India’s Financial Intelligence Unit (FIU) has fined Binance, the world’s largest cryptocurrency exchange, approximately $2.2 million (18.82 crore INR). The penalty was imposed for providing services to Indian clients without adhering to the nation’s anti-money laundering rules. This enforcement action was announced on Thursday.

Key Points:

• Binance fined $2.2 million for AML violations.
• FIU approval in May was conditional to penalty payment.
• Binance and other exchanges received showcause notices in January 2024.
• Approval given after a hearing with FIU.

Showcause Notices and Initial Ban

In January 2024, Indian authorities issued showcause notices to Binance and several other offshore cryptocurrency exchanges. Subsequently, these exchanges were banned from operating in India for “operating illegally.” This is not the first time Binance has been issued a big fine like this. They have been fined heavily by Canadian authorities in the past as well

Conditional Approval in May

In May, India’s FIU approved Binance, along with KuCoin, as one of the first offshore crypto-related entities. However, this approval was conditional on the payment of a penalty after a formal hearing.