Regulation
Financial Intelligence Unit imposes ₹18.82 crore fine on cryptocurrency exchange Binance for violating anti-money laundering norms
Financial Intelligence Unit (FIU) imposed a fine of ₹18.82 crore ($2.25 million) on cryptocurrency exchange Binance for operating in violation of anti-money laundering norms. Binance did not immediately respond to an email seeking comment.
Virtual digital asset service providers, such as cryptocurrency exchanges, must be registered with the FIU as a reporting entity and comply with its anti-money laundering rules.
In May, Binance registered with the FIU as the exchange sought to resume operations, after the regulatory FIU issued show-cause notices to nine offshore exchanges that were operating in violation of the rules.
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The regulator had also asked the Ministry of Electronics and Information Technology (MeitY) to block online access to stock exchanges. Cryptocurrency exchange KuCoin had registered with the FIU in March but faced a minor fine of ₹34.5 lakh.
In May, Canada’s anti-money laundering agency also fined Binance $4.38 million for violating anti-money laundering regulations. Changpeng Zhao, former CEO of Binance, was sentenced to four months in prison in May by U.S. District Judge Richard Jones in Seattle after pleading guilty to violating the country’s anti-money laundering laws.
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