India’s Financial Intelligence Unit (FIU) has imposed a fine of Rs 188.2 million (approximately $2.25 million) on Binance for violations of Anti-Money Laundering (AML) regulations. The FIU announced this penalty on Thursday, citing Binance’s failure to comply with the Prevention of Money Laundering Act (PMLA), 2002, while providing services to Indian clients.
Binance has not issued an immediate response to the fine imposed by India’s FIU.
Binance, operating as a Virtual Digital Asset Service Provider under Indian law, is obligated to maintain transaction records and implement robust AML measures. However, according to the FIU’s investigation, the exchange did not fulfill these obligations during its operations in India.
Earlier this year, Indian authorities issued show-cause notices to Binance and other offshore exchanges, accusing them of illegal operations in the country. Despite these actions, in May, Binance and KuCoin were conditionally approved by the FIU, contingent upon a fine after further deliberations.
This isn’t the first regulatory setback for Binance globally. In May, Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) imposed a $4.4 million penalty on the exchange for similar breaches related to reporting and registration failures.
Furthermore, earlier this year in Nigeria, two Binance executives were detained over allegations of tax evasion and money laundering, reflecting ongoing international scrutiny of the exchange’s operations.
