The world's largest cryptocurrency exchange, Binance, has been fined Rs 18.8 crore by India's Financial Intelligence Unit on non-compliance with anti-money laundering rules.
Binance was first served a notice in December 2023, after it was found to be operating in India without adhering to statutory obligations under the Prevention of Money Laundering Act. The company was asked to demonstrate why appropriate action should not be undertaken against it for its dereliction of duties under the act, despite its status as a reporting entity, owing to its operations as a virtual digital asset service provider.
However, in May, Binance and KuCoin received approval to operate as virtual asset service providers in India.
Pursuant to the notice, charges against Binance were found to be substantiated, the FIU said in a statement dated June 19.
Alongside the fine, specific directions have also been issued to Binance to ensure compliance with the obligations outlined in Chapter IV of the Prevention of Money Laundering Act, which pertain to the prevention of money laundering activities and combating the financing of terrorism.
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