India Hits Binance With $2.25 Million Fine For PMLA Breach

Binance, one of the world’s leading cryptocurrency exchanges, was recently fined approximately $2.25 million (Rs 188.2 crore) by the Financial Intelligence Unit of India. [FIU]The order dated June 19, 2024 reads as follows: Quote Multiple violations of anti-money laundering laws [PMLA]The financial regulator alleged that the cryptocurrency exchange, which was established in 2002 as a virtual digital asset service provider, had failed to comply with its legal obligations under the PMLA while providing services to Indian customers and maintaining its business in the country.

Last year, the FIU issued a notice to Binance, seeking an explanation for its non-compliance. The trading platform was required to justify why it would not take action against it for failing to fulfill its responsibilities under the Act. After a thorough review of Binance’s written and oral submissions, the FIU-IND director determined that the accusations were substantiated.

Binance

The move comes three months after the platform and nine other offshore crypto platforms were banned from operating in India for failing to comply with the Financial Intelligence Unit (FIU) and PMLA guidelines. Prior to that, Binance boasted a 90% share of the estimated $4 billion in cryptocurrency held by Indian citizens.

Despite the fine, the exchange has made it clear that it intends to rejoin the market, but re-entering the market will require it to meet new conditions, such as registering with the Financial Intelligence Service and complying with relevant legislation, such as the Money Laundering Prevention Act and the VDA Tax Framework.

Binance Announces Plans to Re-enter India

Previously, Seychelles-based crypto exchange Kucoin registered with the FIU in March and was fined $3.45 million. After complying with FIU regulations, the ban was lifted. The move makes Kucoin the second offshore exchange to register with the FIU. International University of Japan PMLA regulations will be formally implemented.

“Thanks to KuCoin and now Binance, it looks like foreign exchanges aren’t going to miss out on the Indian crypto market,” one user wrote.

Additionally, Binance revealed that it plans to offer localized payment solutions, set up a dedicated team in India, and further invest in the country’s blockchain infrastructure.

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