In May, Binance and KuCoin became the first offshore crypto-related entities to receive conditional approval from India’s Financial Intelligence Unit (FIU) upon payment of a penalty. Binance, the world’s largest cryptocurrency exchange, has been fined approximately $2.2 million (18.82 crore INR) for providing services to Indian clients without complying with the nation’s anti-money laundering regulations, as announced by India’s anti-money laundering unit on Thursday.
In January 2024, Binance and several other offshore cryptocurrency exchanges received showcause notices from Indian authorities and were subsequently barred from operating in India for “operating illegally.” However, after a hearing with the FIU, Binance became the first offshore crypto-related entity, along with KuCoin, to be conditionally approved by India’s FIU upon payment of a penalty.
“After reviewing the written and oral submissions of Binance, the Director of FIU-IND, based on the available evidence, found the charges against Binance to be substantiated,” the FIU statement said.
“We urge all industry participants to strictly adhere to laws related to anti-money laundering (AML) and combating the financing of terrorism (CFT),” stated Dilip Chenoy, Chairman of the Bharat Web3 Association.
As a result, the Director of FIU-IND imposed a “total penalty” of approximately $2.2 million on Binance along with “specific directions to ensure diligent compliance with the obligations.”
