Binance Hit With $2.2 Million Fine by Indian Authorities

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  • Binance has been fined approximately $2.2 million by India’s FIU for violating anti-money laundering regulations
  • This penalty follows showcause notices issued to Binance and other offshore exchanges in January 2024
  • Binance and other exchanges have been removed from the Indian market for operating illegally

Binance has been fined 18.82 crore INR (approximately $2.2 million) by India’s anti-money laundering authority for providing services to Indian customers without complying with the country’s stringent anti-money laundering regulations. This announcement, which came on Thursday from India’s Financial Intelligence Unit (FIU), is the result of a series of showcause notices issued by Indian authorities to Binance and several other offshore exchanges in January 2024. These exchanges were found to be operating illegally within the country, leading to their subsequent removal from the Indian market.

Binance Blocked for Indian Users

Binance’s history in India has been marked by both rapid expansion and regulatory hurdles. The exchange initially operated in a challenging environment in India due to the lack of clear regulatory frameworks, but the landscape began to change in 2020 as Indian authorities started formulating policies to regulate the crypto market more effectively.

In January, Binance, Kraken and other exchange apps were removed from India’s app stores, but in April reports emerged that Binance would be allowed to re-open, conditional upon paying a penalty, following a thorough hearing with the FIU. The FIU released a statement yesterday which confirmed that, after a detailed review of the evidence and submissions from Binance, the charges were confirmed.

$2.2 Million Penalty Confirmed After Hearing

In the statement, FIU Director Vivek Aggarwal determined that Binance had indeed violated the country’s anti-money laundering laws, laying down a total penalty of approximately $2.2 million. Additionally, the exchange was issued specific directions to ensure strict compliance with its regulatory obligations going forward.

This development underscores the ongoing efforts by Indian authorities to regulate the cryptocurrency market more effectively and ensure that all players adhere to national laws. It also reflects Binance’s willingness to engage with regulators and comply with local laws to continue its operations in one of the world’s largest and most promising crypto markets.

Following the fine and adherence to FIU guidelines, Binance is expected to be allowed to operate in the country again.