Binance found itself in regulatory hot waters following a fine from Indian regulators for an alleged violation.
India’s Financial Intelligence Unit (FIU) slapped an 88.2 million rupees ($2.25 million) fine on Binance allowing its residents access to its service without observing anti-money laundering (AML) rules.
Binance Fined by Indian Regulators for AML Violations
Regulators in India removed Binance and a couple of other foreign crypto exchanges for illegal operations earlier this year. However, Binance and Kucoin secured approval from the FIU in May. However, the approval was conditional to paying a penalty following a hearing with the FIU.
Announcing the fine, the FIU wrote: After considering the written and oral submissions of Binance, the Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated.”
A spokesperson noted that the exchange is reviewing the FIU’s order. Binance, via its spokesperson, said: “We are grateful to have the opportunity to continue our mission to serve the vibrant Indian crypto community. We wish to work with the FIU as a reporting entity and we are enthusiastic about reentering the Indian market to contribute positively, should we be able to do so shortly. We remain dedicated to maintaining transparency, fostering cooperation, and ensuring compliance with regulatory authorities.”
More Regulatory Concerns
The FIU lists several violations the exchange in its fine against the exchange. The regulator claimed Binance failed to keep and submit transaction records. In addition, the charges noted that Binance could not provide authorities with the necessary information, and maintain records as required.
The FIU isn’t the first regulator to impose a fine against the exchange. Last month, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) hit Binance with an administrative monetary penalty of $4.4 million. The regulator claimed the exchange failed to register and disclose significant digital asset transactions.
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