India’s cryptocurrency sector witnessed a major development as the Financial Intelligence Unit (FIU) directed Binance, a leading global blockchain and cryptocurrency platform, to pay a fine of Rs 18.82 crore in order to recommence its operations in the country.
The fine comes in response to Binance’s violation of domestic anti-money laundering regulations.
The FIU, after thorough deliberation on both written and oral submissions from Binance, concluded that the company had indeed contravened local laws.
A notification from the FIU on Thursday confirmed the imposition of the penalty and outlined additional directives for Binance to ensure strict compliance with the Prevention of Money Laundering Act (PMLA) of 2002 and its associated regulations.
The notification stated, “Binance received specific directives to ensure diligent compliance with the obligations outlined in Chapter IV of the Prevention of Money Laundering Act (PMLA) of 2002, along with the PMLA Maintenance of Record Rules (PMLA Rules) of 2005, aimed at preventing money laundering activities and combating the financing of terrorism (AMLCFT).”
Binance, which had registered with the FIU in May amid efforts to re-enter the Indian market, faced regulatory scrutiny last year when it, along with eight other offshore exchanges, received a show-cause notice for operating without adherence to local norms.
This led to a temporary prohibition on Binance’s operations in India as part of the FIU’s broader crackdown on unregistered offshore crypto exchanges.
In contrast, rival crypto exchange KuCoin successfully navigated the regulatory landscape by fully registering and resuming operations after paying a fine amounting to Rs 34.5 lakh.
Also Read: Markets Decline In Early Trade On Profit-Booking
To read more such news, download Bharat Express news apps
