Binance Fined ₹18.82 crore by Fin Intelligence Unit

The Financial Intelligence Unit of India (FIU-IND) has imposed a penalty of ₹18.82 crore on global cryptocurrency exchange Binance, citing non-compliance with the country’s anti-money laundering law.

This is the highest penalty imposed by India on a crypto entity so far. In December 2023, the intelligence unit of the finance ministry, which is tasked with supervision of trade in virtual digital assets, had issued notices to Binance and eight other global crypto exchanges, warning that their operations had not been in compliance with local laws and seeking their response. In January, they were banned from operating in India through web addresse and mobile applications.

Based on the material available on record and after considering the written and oral submissions of Binance, the FIU-IND director found that the charges against Binance were substantiated, the agency said in a notice dated June 19. The penalty was imposed under provisions of the Prevention of Money Laundering Act, it said.

Binance didn’t immediately respond to an email seeking comment. Global exchange KuCoin paid a penalty of ₹35.5 lakh earlier this year for past non-compliances, FIU-IND said last month. Among other crypto entities, Bitstamp and OKX have wrapped up operations in India, while Gate.io and Kraken are still in conversations with the FIU. The remaining have not responded to the notices.

ET reported in April that Binance was poised to return to the country by paying a penalty of about $2 million (about ₹16.7 crore at current exchange rates). Binance is the world’s largest crypto exchange in terms of both asset holdings and daily trade volume.

S-ET Image Source: Google

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