India’s Financial Intelligence Unit (FIU) fined Binance, the largest cryptocurrency exchange globally, $2.25 million for operating in the nation under local anti-money laundering laws.
Virtual digital asset service providers, such as cryptocurrency exchanges, must register as reporting entities with the FIU and adhere to the anti-money laundering regulations in India.
After nine offshore exchanges operating in breach of local regulations received show-cause warnings from the watchdog, Binance registered with the FIU in May in an attempt to continue operations in the nation.
The ministry of electronics and information technology was also requested by the watchdog to obstruct the exchanges’ internet access.
The cryptocurrency exchange KuCoin was subject to a lesser fine of 3.45 million Indian rupees despite having registered with the FIU in March.
In May, Canada’s anti-money laundering authorities fined Binance $4.38 million for breaking anti-money laundering regulations.
The former CEO of Binance, Changpeng Zhao, admitted guilt to breaking the nation’s anti-money laundering rules and was sentenced to four months in jail by US District Judge Richard Jones in Seattle in May.
