Regulation
India fines Binance $2.2 million for anti-money laundering violations
The Indian Financial Intelligence Unit (FIU) has fined Binance, the world’s largest cryptocurrency exchange, INR 188.2 million (~$2.2 million) for failing to comply with anti-money laundering regulations. This enforcement measure reflects India’s growing enforcement of Virtual Digital Asset Service Providers (VDASPs) under the Prevention of Money Laundering Act (PMLA) 2002.
At the same time, Binance is contesting a $4.4 million fine from the Canadian Financial Regulator.
Binance faces regulatory challenges
The director of FIU-India determined that Binance was operating in India without complying with its statutory obligations under the PMLA. This decision came after an in-depth analysis of Binance’s proposals. Furthermore, the order requires Binance to enhance its compliance protocols under the PMLA and its 2005 Rules, which aim to curb money laundering and terrorist financing.
This Indian fine is part of a larger initiative in which international trade aligns with local regulations. Recently, Binance and KuCoin have been recognized as the first offshore crypto entities registered with the FIU, a crucial step in an industry where Indian authorities require stringent anti-money laundering compliance.
To know more: Binance Review 2024: Is It the Right Cryptocurrency Exchange for You?
The push for registration began after December 2023, when FIU-IND has issued warnings to nine offshore cryptocurrency exchanges, including Binance. Concurrently, Apple has removed non-compliant platforms from its App Storeand the Ministry of IT blocked their websites, urging users to switch to compliant Indian exchanges.
At the same time, in Canada, Binance is attractive against a $4.4 million fine from the Financial Transaction and Reporting Analysis Center of Canada (Fintrac). The agency cited failures to register as a foreign currency services company and failure to report large virtual currency transactions. Binance claims that its Canadian operations were small and marginal compared to its global presence.
This appeal follows a series of regulatory issues on the subject Binance, including a significant $4.3 billion deal in the United States on anti-money laundering and sanctions violations. Last year, Binance has decided to exit the Canadian markethighlighting the regulatory challenges it brings in different regions.
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