Binance and KuCoin were the first offshore crypto-related entities to be approved by India’s Financial Intelligence Unit (FIU) in May, provided that they pay a penalty.
The anti-money laundering agency of India has imposed a fine of approximately $2.2 million (18.82 crore INR) on Binance, the world’s largest cryptocurrency exchange, for failing to comply with the nation’s anti-money laundering regulations when offering services to Indian clients.
In January 2024, Indian authorities issued showcause notices to Binance and several other offshore cryptocurrency exchanges, which culminated in their removal from India for “operating illegally.”
Nevertheless, Binance and KuCoin were the first offshore crypto-related entities to be certified by India’s Financial Intelligence Unit (FIU) in May, subject to the payment of a penalty following a hearing with the FIU.
The FIU announcement stated that the charges against Binance were substantiated after the Director, FIU-IND, reviewed the written and oral submissions of the Binance. This determination was made based on the material available on record.
Dilip Chenoy, Chairman of the Bharat Web3 Association, issued a statement urging all industry participants to adhere to the laws concerning anti-money laundering (AML) and combating the financing of terrorism (CFT).
“As a result, the Director of the Federal Investigation Unit-India directed the imposition of a “total sanction” of approximately $2.2 million on Binance, in addition to “specific instructions to guarantee diligent adherence to the obligations.” Binance did not promptly respond to a request for comment from CoinDesk.
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