FIU imposes $2.25 million penalty on foreign crypto exchange Binance

Fine on Binance:  Financial Intelligence Unit (FIU) has imposed a fine of Rs 18.82 crore ($2.25 million) on Binance, world's largest cryptocurrency exchange, for violating local anti-money laundering regulations while operating in India.

In May, Binance registered with FIU in an attempt to resume its operations in country. This registration followed a show-cause notice issued by financial watchdog in December 2023, which also targeted eight or offshore exchanges for non-compliance with local rules.

Binance, founded in 2017 by Changpeng Zhao, is world's largest cryptocurrency exchange by tring volume. Hequartered in Malta, Binance offers a range of digital asset tring services, including spot and derivatives tring, staking, and lending. 

recent notification stated, “After considering written and oral submissions of Binance, Director of FIU-IND, based on available evidence, found that charges against Binance were substantiated.”

Financial Intelligence Unit (FIU) h directed Ministry of Electronics and Information Technology to block online access to non-compliant cryptocurrency exchanges.

In contrast, Binance's competitor KuCoin successfully registered and became operational after paying a penalty fee of Rs 34.5 lakh. 

In May, Cana’s anti-money laundering agency fined Binance $4.38 million for violating anti-money laundering regulations.

ditionally, Changpeng Zhao, Binance's former CEO, was sentenced to four months in prison in May by US District Judge Richard Jones in Seattle after pleing guilty to money laundering charges.