Binance Fined $2.2M by India’s Financial Intelligence Unit

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 adhering to the nation’s anti-money laundering rules, India’s anti-money laundering unit announced Thursday.
Binance and several other offshore cryptocurrency exchanges were issued showcause notices by Indian authorities and subsequently removed from India for “operating illegally” in January 2024.
However, Binance became the first offshore crypto-related entity, along with KuCoin, to be approved by India’s Financial Intelligence Unit (FIU) in May, conditional to paying a penalty after a hearing with the FIU.
“After considering the written and oral submissions of the Binance, Director, FIU-IND, based on the material available on record, found that the charges against Binance were substantiated,” the FIU announcement said.
“We call upon all industry participants to strictly adhere to laws related to anti-money laundering (AML) and combating the financing of terrorism (CFT),” said Dilip Chenoy, Chairman, Bharat Web3 Association.
“Consequently, the Director FIU-IND” ordered the imposition of a “total penalty” of approximately $2.2 million on Binance along with “specific directions to ensure diligent compliance with the obligations.”
Binance did not immediately respond to a CoinDesk request for comment.
Read More: Binance, KuCoin Win Registration From India Anti-Money Laundering Regulator as Crypto Credibility Improves
UPDATE (June 20, 12:40 UTC): Adds comment from Bharat Web3 Association.
Edited by Omkar Godbole.
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.
Amitoj Singh is a CoinDesk reporter.