The Financial Intelligence Unit has imposed a fine of Rs 18.82 crore on Binance, the world's largest cryptocurrency exchange, for violating domestic anti-money laundering regulations in India.

“After considering the written and oral submissions of Binance, the Director, FIU-IND has concluded, based on the materials available, that the allegations against Binance are substantiated,” the FIU said in a statement. “In addition, specific instructions have been issued to Binance to ensure diligent compliance with the obligations laid down under Chapter IV of the Prevention of Money Laundering Act (PMLA), 2002 read with the PMLA Record-Keeping Rules (PMLA Rules), 2005 for Prevention of Money Laundering Activities and Combating Financing of Terrorism (AMLCFT),” it added.

Binance fined

Binance had registered with the Financial Intelligence Unit in May to resume operations in the country after receiving a request for comment from the financial regulator in December 2023 along with eight other offshore exchanges that had violated local regulations.

In December, Binance was banned from doing business in India for non-compliance with local regulations as part of the financial regulator's crackdown on offshore crypto exchanges operating without registration in the country.

Binance can now resume operations only after paying the penalty for the previous non-compliance. Virtual digital asset service providers such as crypto exchanges must comply with the obligations prescribed under the country's anti-money laundering rules in India.

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