India’s Financial Intelligence Unit (FIU) has fined Binance a substantial amount, approximately $2.25 million (188.2 million rupees), for failing to register with the FIU and violating anti-money laundering (AML) regulations. The penalty, announced on June 19, includes breaches of multiple AML rules and directives aimed at preventing financing of terrorism. Binance has not issued any public response to the fine at this time.
India has been identified by Chainalysis as one of the fastest-growing crypto economies, showing significant adoption rates as of 2023. Earlier in April, crypto.news reported that Binance had agreed to pay an additional $2 million penalty after being suspended for four months by the FIU.
Before Binance’s January ban, the exchange controlled over 90% of India’s crypto trading volume, with its popularity soaring as traders sought to evade new tax regulations imposed by the Indian government.
In March, India’s Ministry of Finance mandated that all crypto businesses register with the Financial Intelligence Unit (FIU) and comply with the Prevention of Money Laundering Act (PMLA). By December 2023, 28 cryptocurrency firms had registered with the FIU, according to crypto.news.
The stance on crypto in India remains contentious, with regulatory bodies divided on how to handle the industry. Nirmala Sitharaman, India’s Minister of Finance, has advocated for international cooperation to develop a comprehensive crypto framework and emphasized the benefits of blockchain technology. Conversely, the Reserve Bank of India continues to push for a blanket ban on digital assets.
