India’s Financial Intelligence Unit, FIU, has imposed a fine of $2.25 million on the world’s largest crypto exchange, Binance for operating in the country in violation of local anti-money laundering regulations.
India requires virtual digital asset service providers like crypto exchanges to be registered with the FIU as a reporting entity and comply with its anti-money laundering rules.
In May, Binance had registered with the FIU as the exchange sought to resume operations in the country after the watchdog issued show-cause notices to nine offshore exchanges operating in violation of local rules.
A document titled ‘Order in original No. 10/DIR/FIU-IND/2024 in the matter of Binance u/s Section 13 dated 19.06.2024’, displayed on it site on Thursday, the FIU, said the fine was for violating its money laundering law.
The Indian Authority said Binance as a registered entity in the country, has violated three sections of the country’s Prevention of Money Laundering Act 2002.
The watchdog had also asked the ministry of electronics and information technology to block online access to the exchanges.
Canada’s anti-money laundering agency had also imposed a fine of $4.38m on Binance in May for violation of anti-money laundering rules.
READ ALSO: Court strikes out tax evasion charges against Binance executives
Changpeng Zhao, the former chief executive of Binance, was sentenced to four months in prison in May by US District Judge Richard Jones in Seattle after pleading guilty to violating the country’s laws against money laundering.
Binance financial trial is not limited to India as Nigeria’s Federal Inland Revenue Service, has filed a case of tax evasion against the company.
The Economic and Financial Crimes Commission also accused it of laundering more than $35m through its platform.
The Nigerian government recently accused the cryptocurrency exchange of influencing foreign exchange (FX) rates, leading to stricter oversight of crypto trading platforms.
On February 28, Nigerian authorities detained two senior Binance executives: Nadeem Anjarwalla, a 37-year-old British-Kenyan who serves as the regional manager for Africa, and Tigran Gambaryan, a 39-year-old American who is the head of financial crime compliance at Binance.
Following the federal government’s ban on cryptocurrency channels as part of a campaign against currency speculation, the Binance executives visited Nigeria for a meeting.
Although the Federal High Court, last week discharged Gambaryan and fleeing Anjarwalla from the Federal Inland Revenue Service tax evasion case against the cryptocurrency exchange platform, Binance, the FIRS has filed amendment charges against them with Binance as the sole defendant.
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